Co-op 'bribe' case in week five

THE 'Co-op trial' at Snaresbrook Crown Court, moves into its fifth week next Tuesday. The prosecution alleges that Andrew Regan, chief executive of food company Hobsons, paid £2m in bribes to two Co-op managers in Manchester to secure a £200m-a-year contract.

A jury has been told that Hobsons and Regan paid more than £5m for a twoanda-half- year extension to a three-year supply deal, agreed when the Co-op sold its food manufacturing group for £105m.

While £2.85m was paid to the Co-op, key to the case is a £2.4m 'brokerage' fee to Trellis International, controlled by Dutch-born Israeli national Ronald Zimet.

Douglas Day QC, for the prosecution, said Trellis paid £1m each into Monavale and Pitchblend, companies allegedly set up for the benefit of former Coop managers Allan Green and David Chambers.

Day said Regan attempted to cover up these payments by persuading Zimet to say he had brokered the deal with the Co-op, when he had nothing to do with it.

Regan's barrister, John Kelsey-Fry QC, disagreed. He suggested Zimet masterminded the operation, giving evidence to avoid prosecution. Zimet denied this, but admitted that going along with Regan was a 'bad mistake'. Zimet said that when Regan later launched an unsuccessful bid for the Co-op, he urged him not to proceed.

Regan, 36, is charged with stealing £2.4m, Green, 57, and Chambers, 56, with corruption, and solicitor Paul Thomas, 42, with aiding and abetting. All four plead not guilty.