Verdict Expected in Ahold Executives’ Case

Four former managers of supermarket group Ahold could be jailed for their role in one of Europe’s largest financial scandals when a Dutch court hands down its verdict today.

The trial on fraud charges -- which prosecutors say is the largest ever in the Netherlands -- is the final act in a saga that pushed one of the world’s largest retailers and foodservice groups to the brink of collapse.

Prosecutors have demanded a 20-month sentence, six of them suspended, for former Chief Executive Cees van der Hoeven, singled out for taking a leading role, and for ex-Chief Financial Officer Michiel Meurs, described by prosecutors as an accomplice.

Both men resigned over the scandal in February 2003 and denied any wrongdoing.

Ahold said at that time that profit had been overstated by about $1.25 billion, mainly in the United States, tarnishing its reputation as one of the Netherlands’ leading companies.

The charges relate to the consolidation of several retail subsidiaries and adding sales of joint ventures in Scandinavia and South America to Ahold’s accounts by allegedly deceiving accountants with false letters.

Ahold’s U.S. holdings include the Giant and Stop & Shop supermarket chains.

Defense lawyers have said the four former Ahold managers were the victims of a witch hunt, denying charges of forgery and arguing that the consolidation was justified.

Other defendants include Jan Andreae, the former board member responsible for Europe, and Roland Fahlin, once a supervisory board member and accountancy committee chairman.

Ahold itself is not party to the case brought by the Dutch public prosecutor.