Disciplinary Tribunal - Coopers faces hearing over 'failure to inform
Coopers & Lybrand is to face a disciplinary tribunal over complaints laid by the profession’s senior watchdog that it failed to inform a hotel company that its managing director was involved in fraud.
The charge is one among a number of complaints laid by the Joint Disciplinary Scheme in connection with a rights issue and audit work done at Resort Hotels, which collapsed in 1994.
PricewaterhouseCoopers, formed by the merger of Coopers with Price Waterhouse, said it will cooperate but contest ‘certain’ complaints. In addition to the firm, the complaints centre on former partner Alun Thomas, former senior manager Mark Harwood and senior manager Ruth Margaret Way, and the former Resort FD, Roland Peter Lewis.
A JDS statement said complaints against Thomas, Way and Harwood related to ‘a failure to inform Resort that evidence suggesting fraud on the part of their managing director had emerged in July 1992’.
Lewis, the former Resort FD, faces a complaint that he failed to ensure that those dealing with him ‘knew the limitation of his responsibilities’ and that he made out that he had knowledge of the business affairs of Resort which he did not possess.
A independent Joint Disciplinary Tribunal will be appointed to hear the complaints and a report published.