An alleged fraud involving bribes for African fishing quotas could potentially threaten jobs in Grimsby.
Icelandic giant Samherji – owner of Ice Fresh Seafood on South Humberside Industrial Estate – has been caught up in a scandal, with chief executive Thosteinn Mar Baldvinsson stepping aside as an internal investigation is launched into claims made in Namibia. They centre around the activity of a former employee, who was dismissed in 2016, and has led to Minister of Fisheries Bernhardt Esau arrested on charges of corruption. It has widened to an investment firm’s executive and more government and business figures.
Following the emergence of the issue, key client Marks and Spencer is now reviewing its supply chain position, with the high street giant awaiting the results of the investigations - stretching some 10,000 km from Reykjavik to Windhoek.
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Ice Fresh expanded significantly in 2017 when it took on a former Coldwater production facility on South Humberside Industrial Estate. Work with Sainsbury’s and M&S was behind the move, with the company ramping up from 36 employees to 80.
Prior to the alleged incidents being uncovered, Sainsbury’s had already given notice it was de-listing a range of products packed at the site, a cost-driven decision which has led to the loss of 20 jobs this summer.
Now question marks hang over the work with Marks and Spencer – understood to be through a third party in Grimsby and in Iceland – while efforts in the factory are geared around growth in non-retail work.
A spokesperson for Marks and Spencer said: “Although Samherji are one of our suppliers, we do not purchase fish from their Namibian operation.
“We are very clear that we demand all our suppliers to conduct business in an ethical and lawful manner and we are taking these allegations very seriously.”
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The high street giant’s position on corporate and social responsibility is regarded as industry-leading, and wider business practices will be at the centre of attention, with the spokesperson highlighting the company’s anti-bribery policy.
Gary Lethem, financial manager for Samherji’s Hessle-based Seagold Ltd sales operation and Ice Fresh Seafood Ltd, said: “In the spring of 2019 Sainsbury’s gave notice that they were de-listing a range of products that included our single frozen Icelandic products that we packed here in the 海角视频. Sadly, this did involve approximately 20 redundancies from our team over the last few months.
“We have since put together a team of incredibly hard-working and invaluable staff that we believe will enable us to grow the business over the next few years.
“We will continue to work closely with our retail partners through our customer base.”
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In Iceland, Björgólfur Jóhannsson has been appointed as acting chief executive as the investigation continues. He was formerly chief executive of Icelandic Group – the company that owned Coldwater and Seachill, who then merged prior to the buy-out by British firm Hilton Food Group, just after the Estate Road Five plant was sold, having been briefly mothballed.
Samherji’s investigation is being assisted by the Norwegian international law firm Wikborg Rein, and is described as “continuing at full force, reporting directly to the board of directors.”
On his appointment, Mr Jóhannsson said: “Samherji plays an important role in the fishing industry worldwide and we have a responsibility towards our people and customers. I am deeply saddened by the circumstances, but I will do my best to safeguard the interest of Samherji and its employees.”
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