Woolworths boss Brad Banducci faces jail over fiery Senate hearing – as he is accused of ‘bulls***ting’ fiery Senate hearing

Woolworths boss Brad Banducci has been threatened with six months in jail and a fine for failing to answer questions in a heated Senate inquiry into the supermarket’s profits.

Banducci was repeatedly asked during a hearing on supermarket prices to reveal Woolworths’ return on equity, a key measure of the company’s profitability.

Instead, the outgoing CEO, who earned $8.6 million during the last fiscal year, declined to answer questions focused on the company’s return on investment.

‘We measure return on investment, which we believe is the right way to measure the profitability of a business,’ he told the inquiry on Tuesday.

Inquiry chairman and Greens senator Nick McKim warned Mr Banducci that failure to answer the question directly could lead to him being held in contempt by the Senate.

‘We are not interested in PR spin. We are not interested in you bulls running through this committee, Senator McKim said.

“This is very important because it is open to the Senate to hold you in contempt and that includes potential sanctions, including up to six months in prison for you.”

A contempt charge comes with a fine of up to $5,000 and a possible prison sentence of six months.

The failure to disclose the response led to the inquiry being forced to suspend its hearings.

The profit margins of the major supermarkets have been scrutinized in the investigation, with Woolworths and Coles being accused of price cutting.

Woolworths made a profit of $1.7 billion after tax in the last financial year.

Senator McKim accused Mr Banducci of picking data around the supermarket’s profits.

“The fact that (Woolworths’ return on equity) is 26 per cent in a year when you made $1.7 billion in profit shows that your company is running like a bandit and actually has a license to print money,” he said.

‘You have used this market dominance to pressure your suppliers, including farmers, to force down wages, to compromise staff safety and to price-fix your customers.’

Previously, Mr Banducci denied that Woolworths had lowered the price.

The profit margins of major supermarkets including Woolworths (pictured) have come under scrutiny as part of the inquiry accusing Woolworths and Coles of price gouging

“It’s very difficult to say we have price spillovers,” he said.

“I would respectfully submit that this is an incredibly competitive market, and that’s good for consumers.”

Coles and Woolworths make up about two-thirds of Australia’s supermarket sector.

Sir. Banducci said inflation in the grocery sector had been largely responsible for skyrocketing prices at the till.

“Grocery inflation is real and has been significantly driven by cost increases from our largest global suppliers of consumer goods and the cyclical impacts on domestic fresh food markets,” he said.

“While at Woolworths we are now seeing falling grocery inflation rates, we nevertheless understand that many of our customers are under enormous cost of living pressure.”

It is one of the last public appearances for Mr Banducci, who announced his resignation from the top job in February after a train wreck interview with the ABC’s Four Corners in which he struggled to answer questions about Woolworths’ market share.

Inquiry chairman and Greens senator Nick McKim (pictured) warned Mr Banducci he could face charges after repeatedly trying to question him

Sir. Banducci will step down as chief executive at the end of August, ending his eight-year run as head of Australia’s largest supermarket.

He had a base salary of $2.6 million, but with bonuses that increased his total compensation to $8.647 million, the company’s annual report showed.

Coles CEO Leah Weckert will appear before the committee later on Tuesday.

The inquiry comes as a review of the voluntary food and grocery code of conduct, which governs the relationship between supermarkets and suppliers, recommended that it be made mandatory with significant financial penalties for breaches.