Execs: We Warned Major Shareholder

Executives with the grocery retail chain Clubmarket say they approached major shareholder Tami Mozes-Borovich in recent years, warning of improper management at the chain.

Some of the executives told Haaretz that Mozes-Borovich sent CEO Yaakov Ginsburg to confront them, and nothing was done about the failings they pointed out.

Retail market sources say some of the chain's measures were not exactly acceptable. Clubmarket trustee Shlomo Nass said yesterday that the trustees have also heard allegations of financial irregularities at the supermarket chain, and he is considering asking the court to appoint an investigative team.

"For the past few days, people have been telling us there was improper management before the chain's collapse, so we will consider asking the court to appoint special investigators," Nass said.

"We are being told that money may have made its way to places it shouldn't have gone. We still haven't examined anything, but we will have to do so soon," Nass said.

Nonetheless, he emphasized that this is not his first task, as his team has been engaged in stabilizing the supermarket, operating branches and trying to find a buyer.

As reported by Haaretz, the Clubmarket auditor, accounting firm Kost Forer Gabbay and Kasierer, part of Ernst & Young, refused to sign the company's 2004 financial reports after what the trustee called "accounting disputes."

"I am doing my utmost to assist the trustee in finding the best solution for consumers and suppliers," Mozes-Borovich said.