Under pressure from authoritarian leaders and an oppressive fear culture, the Ecuadoran branch of Nutreco was whining large -scale with the figures. This reveals a research report in the hands of Follow the Money. Nutreco has a branch in Boxmeer.
The animal feed company that supplies livestock and fishing to the agricultural industry has booked almost 90 million euros too much sales in the past two years. The influence of the monthly figures was created ‘through a culture in which employees follow the orders of their superiors uncritically’.
This is stated in a confidential investigation report from Accountancy Office PWC, which was handed over to the Dutch administration in February 2024 and specifically about the tampering at his Ecuadorian branch, namely fish food producer Gisis SA. Nutreco became 75 percent owner of that company in 2014.
Figures polished
The figures from Nutreco were always polished between April 2022 and September 2023, report the forensic accountants of PWC. In 2022 there was more than 25 million euros too much turnover, 65 million in 2023. As a result, the company seemed financially healthier than it actually was.
The Dutch board heard for the first time on October 13, 2023. Financial director Pieter van Holten then received a worrying app from an employee from Ecuador, who said he had been asked to enter the wrong data in the accounting system. In the first instance, it seemed to be 8 million euros too much, but the forensic accountants of PWC discovered that the amount was much higher.
Extra pressure
The turnover on the balance was manually booked, while that was not allowed, the study shows. The false amounts were based on expected or even desired results. Sometimes the amount required was looked at to achieve the turnover objectives set from the Netherlands.
Some employees feared their job if they would offer contradiction. There was extra pressure on the staff because the bonuses were linked to the turnover figures. According to PWC, that encouraged the manipulation of the results. Signals about the wrong accounting were also ignored.
Checks failed
According to several financial staff, the top in Ecuador knew of the manipulations. But sensitive bookings were rarely discussed and dismissed by the financial director and chief accountant.
External checks on Gisis also failed. Accountants from EY did not notice the cheating about 2023. Despite the thousands of manual transfers, which also deviate from those from the past.
Control work
The tampering shows similarities with the earlier scandal at the Eastern European branch of technology company Imtech, which had a branch in Eindhoven. There, sales were artificially raised, which ultimately led to a bankruptcy in 2025. At Nutreco there is no question of this, but ‘the strong emphasis on authority and obedience’ within Gisis ‘must change’ to prevent worse, notes PWC.
External auditor KPMG has corrected the 2022 annual accounts and says that it has engaged forensic specialists for additional audit work following the PWC study. Nutreco itself did not respond to questions from Follow the Money.