The Issa brothers deny taking money from Asda

Mohsin Issa (right) denied claims that he and his brother Zuber (left) paid themselves dividends

billionaire co-owner Asda has denied siphoning money out of the company and is trying to defend the supermarket's complex ownership structure.

In a rebuttal to MPs, Mohsin Issa denied claims that he and his brother Zuber paid dividends from Asda following the completion of the £6.8 takeover billion pounds in 2021.

Mr Issa's denial came as part of a response to the House of Commons Business and Trade Committee following a tense hearing in July.

Labour's Darren Jones, a former chairman of the committee, wrote to Mr Issa in late August asking for further clarity after he was accused of obstructing MPs.

Mr Jones described how in the past Asda's holding company paid out £1.8 billion in dividends last year, which contradicted Mr Issa's evidence.

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He wrote: “In the witness box I asked about dividends. You said no dividends were paid. But from the available accounts we see that Bellis Acquisition Co PLC received a 'dividend' of £1.8 billion.»

However, in a letter released by the Business and Commerce Committee on Tuesday, Mr. Issa reiterated that “shareholders have not received any dividends since acquiring the business in 2021.”

He said the payment £1.8 billion was made to repay intercompany loans.

The dividend review coincided with questions about the ownership structure of Asda, which consists of 24 companies.

Some are registered in Jersey and others in England and Wales.

He said In a letter to Asda, Mr Jones said: “The committee is concerned that the complex structure of the company in which Asda operates , and associated funding decisions may limit your ability to help your customers cope with the pressures associated with the rising cost of living.»

In response, the Asda co-owner said it was not unusual for a business of its size to have such a complex structure.

Mr Issa said the business was set up to simplify lending practices and secure the future. takeover.

MPs also asked for more details on interest-free loans allegedly provided to finance the purchase of private jets.

Mr Issa said EG Group, a petrol station empire owned by two brothers, publicly disclosed the loans on their accounts: “The EG Group board is aware of this arrangement and has approved it.”

The talks between Mr Jones and Mr Issa come after the Asda co-owner appeared before the committee in July.

At the time, Mr Issa was accused of “wasting time” and “obstructing” MPs after failing to answer all questions. committee issues related to food and fuel prices.

Mr. Issa said in a written response that he is “a deeply private person who does not seek the spotlight and I do not feel particularly comfortable in it »

Asda declined to comment further.