Interserve paid ?8m for investigation

Interserve paid ?8m for investigations
into accounting misstatements at its industrial services arm.

Chief executive of the services, maintenance and building group,
, said the legal and forensic accounting charges related to
industrial services, were higher than the ?5m suggested at the interim results
but that the charges were now materially over, the FT reported.

Interserve was left red-faced after irregularities in its industrial services
unit came to light, which led to the write-down.

The mistakes related to the entering of invoices into the company’s
accounting system, which were subsequently destroyed.

Interserve’s interim results, delayed
after the accounting errors, showed pre-tax profits of £23.1m after the
necessary adjustments were made, compared to £14.1m last year.

After a review by KPMG and Linklaters in October last year, Ringrose said
there would be no further write-downs and the irregularities had only affected
the industrial services division.

Six senior managers of the department still face the prospect of disciplinary
action after the gaffe.

Further reading:

KPMG called in at Interserve

Interserve faces probe over £25m invoice hole

Interserve board interrogated by

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