PracticeAccounting FirmsConnolly’s Barlow Clowes record attacked

Connolly's Barlow Clowes record attacked

Deloitte said this week that the notorious Barlow Clowes affair was too far in the past to comment on, after calls were made for the resignation of UK chief executive John Connolly.

Bold: Lib Dems call on Deloitte boss to resign

Norman Lamb MP, Liberal Democrat shadow treasury minister, demanded Connolly step down after a national newspaper published a story critical of him on Monday.

‘In terms of restoring confidence, both generally and in terms of Deloitte, it seems to me that Mr Connolly’s position is no longer tenable. For someone in charge of its UK operation to have been so heavily criticised by a financial watchdog seems extraordinary,’ he said.

A story in The Independent highlighted Connolly’s role in the 1980s Barlow Clowes affair, during which elderly investors lost their life savings. The government paid £150m to 18,000 investors as a result.

The paper pointed to a 1995 report by the accountants’ Joint Disciplinary Scheme into the scandal, which claimed Connolly had lacked competence. The report said Connolly ‘fell below the standard which should be displayed by and may properly be expected of a chartered accountant’.

It focused on Connolly’s role in a reverse takeover in which Barlow Clowes was sold to a company called James Ferguson. Connolly was responsible for providing accurate financial data about Barlow Clowes to James Ferguson shareholders. The report ordered that Connolly pay £40,000 in costs and that he be officially reprimanded.

Deloitte said: ‘This refers to a piece of work carried out back in the eighties and the findings of the JDS report have been in the public domain now since 1995. It is not an issue we feel it is necessary to comment on.’

Related Articles

EY director joins Crowe Clark Whitehill as partner

Accounting Firms EY director joins Crowe Clark Whitehill as partner

1d Emma Smith, Managing Editor
RSM announces growth across every business line in 2017

Accounting Firms RSM announces growth across every business line in 2017

3d Lucy Skoulding, Reporter
WorkStyle: Helping accountants to support new contractors

Accounting Firms WorkStyle: Helping accountants to support new contractors

1w ClearSky Accounting | Sponsored
Grant Thornton grows profits while radically reshaping portfolio

Accounting Firms Grant Thornton grows profits while radically reshaping portfolio

1w Alia Shoaib, Reporter
How to protect LLP firms from a damaging team move

Accounting Firms How to protect LLP firms from a damaging team move

1w Clive Greenwood, Lewis Silkin
Grant Thornton reports gender pay gap at 26.6%

Accounting Firms Grant Thornton reports gender pay gap at 26.6%

3w Alia Shoaib, Reporter
5 ways to adapt your accounting services for millennial clients

Accounting Firms 5 ways to adapt your accounting services for millennial clients

4w Receipt Bank | Sponsored
Smith & Williamson reports double digit growth

Accounting Firms Smith & Williamson reports double digit growth

4w Alia Shoaib, Reporter