The disgraced director of a company, which bribed a senior Sainsbury's potato buyer with bungs totalling £4.9m, told a jury yesterday the owners were determined to make a "big splash" for his fortieth birthday with a £350,000 twelve-day holiday to the Monaco Grand Prix.
Greenvale AP account manger David Baxter, 50, who spent 30 years with the company, said the three senior directors who ran it orchestrated the corrupt payments to buyer John Maylam, 44, (pic.top) in return for an annual £40m contract with the supermarket giant.
"It was about keeping John sweet and he was probably getting a bit more greedy when he asked us to fund a holiday," Baxter, (pic.mid.) of Holly House, Chester Road, Hinstock, Market Drayton told Croydon Crown Court.
Baxter, who along with Maylam has pleaded guilty to corruption and acquiring criminal property, worked from offices in Tern Hill, Warrant Road, Stoke Heath and is giving evidence against Greenvale finance director Andrew Behagg, 60, (pic.bottom) who was based in Harvest House, Bridge Street, Chatteris, Cambridgeshire.
The company also picked-up Maylam's £200,000 tab at Claridge's Hotel and Baxter held the firm's Clydebank credit card. "It was laid behind reception at Claridge's as a third-party payment means.
"Myself, John and any other guests stayed there and the invoices from Claridge's went to Chatteris," explained Baxter. "At Christmas John pulled out and he said to me: 'The rooms are going to be there anyway so go yourself."
Baxter insisted Behagg, of London Road, Cambridge, who has pleaded not guilty to corruption, and his two fellow senior Greenvale AP directors, Alan Owens and Angus Armstrong knew about the corrupt payments.
"They should have known about it," he said, referring to Maylam's lavish 2007 trip to the Monaco GP. "It was his fortieth and we wanted to do a big splash, including a week's holiday either side of the race in the south of France for John and his partner, but I never knew it would cost that much."
The bill for the trip was divided into smaller invoices to avoid suspicion within Greenvale. "It would have raised an eyebrow if the full amount had come in."
The corruption began when company bosses became worried in 2005 about what would happen to their income when their two-year Sainsbury's contract ended, said Baxter.
"What would happen after the two years had elapsed? That was the biggest concern. There was a point in time when Alan Owens said he wanted to change the way we incentivised.
"He said: 'We have to look after John' and he took steps to ensure the business did not suffer.
"Alan Owens got a knock back first. John did not want to take up the offer of looking after his expenses, but a few months later John did want to do something.
"The whole thing was discussed with Alan, Angus and Andy (Behagg) and it was agreed John would send receipts to my home address and I would send them on to Andy at Chatteris and he would arrange for cash to be sent to me and I would forward it to John. It happened on many occasions.
"I would usually arrange a business meeting in London and hand over the brown envelope to John."
Baxter had another meeting with the three senior directors when Maylam demanded more money from 'The Fund' - a cash pot under Greenvale AP control, which Sainsbury's had been paying into.
"Andy was there as the person who had the strings on the finances and we discussed John's desire to take more out."
As a result Behagg allegedly suggested Maylam bill for a consultancy report and received another £85,000.
Greenvale AP also funnelled money into two Spanish-based companies and John Maylam Potato Consultants.
"I knew them to be accounts set up to facilitate larger payments that were to end up with John and Alan instructed Andy to set up the necessary facilities.
"They were to be phrased as high-risk storage and haulage, which are the highest costs for a potato company and Andy would say to me there were large amounts going through those accounts. Clearly it was not right," added Baxter.
As for the lavish corporate entertainment Greenvale AP showered on Maylam he said: "There were so many of them in the end they did not bother checking."
The court heard "dozens and dozens" of bottles of expensive vintage Dom Perignon champagne were consumed by Maylam and Baxter at Claridge's - often followed by a fine claret.
Baxter alone enjoyed an all-expenses trip to Antigua - financed by 'The Fund' - and Maylam bought him a brand-new £80,000 BMW M5 car.
"I was convinced if I did not know where the money came from it would be alright," Baxter told the court.
"I thought I was doing my job, but it got a bit out of hand. At the time it was the way we did things. It was the use for which the fund was there."
Baxter spent a total of 77 nights at Claridge's during 49 trips to the luxury Mayfair hotel.
Receipts also proved he enjoyed a £200 bottle of Dom Perignon at the five-star Mandarin Oriental, Knightsbridge before a £843 sushi meal - all financed by the Sainsbury's-funded account controlled by Greenvale AP.
Further receipts prove Maylam's room bill for a presidential suite during the Monaco Grand Prix came to £48,000 alone.
He was also entertained at the luxury Blue Palace Resort & Spa, Crete, where Greenvale ensured there was a bottle of chilled Veuve Clicquot champagne on his arrival, plus a bouquet of freshly-cut flowers and strawberries and cream.
Trial continues…….
No comments:
Post a Comment