Buyer for Sainsbury's is arrested

Greenvale supplies about half of Sainsbury's potatoes

A potato buyer for supermarket Sainsbury's has been arrested over claims he received illegal payments from a supplier.

John Maylam was questioned by City of London police after claims he took cash from producer Greenvale.

The alleged payments are thought to be about £3m. A member of Greenvale staff was also arrested and questioned.

Police said two men were arrested on suspicion of corruption and money laundering and subsequently bailed.

Staff suspended

Greenvale, based in Tern Hill, Shropshire, won the Queen's Award for Innovation in 2006 and is one of the country's main potato suppliers.

It supplies about half of Sainsbury's potatoes and has packing operations in Shropshire, Cambridgeshire and Berwickshire.

A company spokesman said a number of staff had been suspended following an internal investigation.

Sainsbury's says it notified police after being alerted to the problem by Greenvale.

A spokeswoman for the supermarket said: "We can confirm that allegations have been made concerning certain payments and benefits by a supplier to an individual employed by us.

"We have the highest standards of corporate governance and following inquiries have passed our findings to the police for further investigation."