Home > Latest News > EXCLUSIVE: Harvey Norman Franchisee Sacked, Forensic Accountants Called In

EXCLUSIVE: Harvey Norman Franchisee Sacked, Forensic Accountants Called In

A major investigation is under way to identify the extent of corruption at a major Harvey Norman franchise, following the sacking of the franchisee and the charging of former staff. Some insiders are claiming that millions of dollars worth of questionable reporting is being investigated.

Already, several senior staff who worked at Harvey Norman Commercial at Taren Point have been charged, the former franchisee sacked. Now Harvey Norman forensic accountants are investigating whether stock levels and payments worth millions were manipulated at their most successful franchise store.

The operations of Harvey Norman Commercial at Tarren Point NSW, which has been described as the most profitable franchise in the world for the big retailer, is under intense investigation by forensic accountants, with the actions of former franchisee Alan Stevenson, who has already been sacked, being probed.

ChannelNews has no evidence that Stephenson, who has worked for Harvey Norman for more than 30 years, has done anything wrong, however several former staff have contacted ChannelNews regarding the operations of the Harvey Norman operation and prior actions of Stephenson in the running of the operation.

In an email to other senior Harvey Norman management that was leaked to ChannelNews, Stevenson, a close friend of Harvey Norman Chairman Gerry Harvey, took a swipe at head office operations in a parting shot at management.

“I am disappointed to be leaving so soon and I had hoped and expected a transition period so we could work towards my goals of retirement but it’s not to be.

We all know it has been a very difficult 2 years compounded by the staff theft of approximately $600,000 and the sloppy procedures relating to our Aged Trial Balance over a 20-year period (by our operations Manager at the time and our Flemington teams lack of follow up).

So, it has not been a pleasant time. Prior to the last 2 years we were the most profitable Franchise in the Harvey Norman world.”

The two people charged to date are Troy Robinson, the IT Manager, and Kerry Dalton, the former Administration Manager.

Kerry is due to appear in Sutherland District Court on Tuesday for mention.

The case against Kerry was transferred from the Illawarra local court to Sutherland District Court, where the maximum penalty could see her spending five years in jail if found guilty.

NSW Police said in a statement. “Police executed search warrants at the homes of two former employees on 16 December 2022, seizing documentation and electronic devices for further examination,”

After the raids both were charged.

Insiders who have spoken to us are tipping that more charges could follow involving other management at the HNC operation, as investigators go back through the accounts over several years at the Harvey Norman operation, which deals with builders, installers and solution providers.

Of particular interest is millions in payments relating to stock turns and stock levels and how these stock levels were accounted for both locally in store and at head office.

Insiders claim stock was manipulated by some management, especially when it came to monthly reporting and payments in an effort to make the franchise operation look good.

Also being investigated is deals approved by Stephenson with builders who went into liquidation, despite warnings from head office management that the franchisee was not to deal with the builder in question.

Stephenson, who is known to own several properties, is believed to have also had an interest in the Taren Point property where the Harvey Norman Commercial operation is located.

ChannelNews understands that a horse farm owned by Stephenson at Bargo in New South Wales is set to go up for sale shortly.

Former employees have told ChannelNews that Stephenson sometimes requested “Volunteers” of his commercial staff, to work at Bargo, to maintain and improve the property, including painting this property in regular HNC work hours.

Those who did not want to volunteer were made to feel that their jobs were at risk, they claimed.

Some of those who did not “help out” were made redundant.

We have also been told that Harvey Norman management are investigating the relationship, between Stephenson and other members of staff who were asked to do tasks for him in HNC time.

Currently David Cramond, who was one of Stephenson’s protégés, has been asked to relocate from Perth to Sydney to take over HNC Taren Point operations.

Cramond is said to be unhappy with this direction as his eldest child is about to undertake his HSC in WA.

Questions are also being asked about the employment of relatives of Stephenson at Harvey Norman Commercial.

According to sources, the internal auditing team has told current staff that the forensic audit has uncovered discrepancies, well above those seen at any other franchise.

One area of concern is the manipulation of stock holding balances, which are reported to Harvey Norman head office at the end of each month.

 



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