Sacked whistleblower claims Co-operative Group 'haemorrhaging' money

A Co-operative Group director blew the whistle on the company after she found it was "haemorrhaging" money on consultants, a tribunal has heard.

Kathleen Harmeston, who is claiming £5m in damages for unfair dismissal, was sacked as group procurement director in September 2014.

She told a Manchester hearing she had acted after finding issues including one employee being paid £8,000 per day.

The firm said she was sacked due to "behaviour, attitude and performance".

Ms Harmeston claimed she was subjected to "a deliberate campaign to comprehensively disparage my reputation" after she made public interest disclosures.

'Humiliating dismissal'

But the tribunal also heard she had left her previous job at the Royal Mail while a consultancy firm she had hired - Silver Lining Partners (SLP) - had been under investigation amid whistleblower allegations it had been "fleecing" the postal giant.

In her 74-page witness statement, Ms Harmeston said she was head-hunted by the Co-op and joined in April 2014.

She claimed the firm had paid up to £8m more than it should have done in 2013 for consultancy services.

Ms Harmeston said after making "protected disclosures" about governance and financial trust breaches, the company's "attitude changed in a negative way".

Her subsequent suspension was "disproportionate" and her eventual dismissal was humiliating, she added.

'Cynical afterthought'

The Co-op said Ms Harmeston knew about SLP's "incompetence and profiteering" yet employed them in her new job at the Co-op.

Andrew Burns QC, representing the firm said: "It transpired that she had left Royal Mail Group under a cloud after the SLP affair, was poor at her job and exhibited appalling judgement in recruiting SLP.

"It was her behaviour, attitude and performance which was the reason for her dismissal."

He added her claims of "whistleblowing" for the public good were a "cynical afterthought" and a "smokescreen" for her own misconduct.

Ms Harmeston agreed she had not disclosed the matter but said that SLP had "no case to answer", had saved Royal Mail money and was a "competent change agent".

The hearing continues.