The Financial Reporting Council is likely to launch an inquiry into MG Rover’s auditors Deloitte, amid concerns over possible tax avoidance at the collapsed car manufacturer.
The Big Four firm has audited all MG Rover’s accounts, however, The Times reports that the Accountancy Investigation and Discipline Board is believed to be concerned about tax avoidance across MG Rover’s complex corporate structure, and about fees paid to Deloitte for additional services.
The FRC expressed concerns over the Midlands car maker’s accounts in its report to the DTI that led Alan Johnson, the Trade and Industry Secretary, to launch an independent investigation.
Deloitte received a number of payments for services additional to auditing from MG Rover. In 2002 it was paid a total of £3.5m in addition to its £500,000 audit fees.
Last week, it was announced that PricewaterhouseCoopers, MG Rover’s administrators, had been paid £4m for two months’ work.
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children