Fallout from Polly Peck continues
The UK's accountancy watchdog has laid complaints against two partners and one former partner of a firm in Northern Cyprus for their role in the collapse of Polly Peck International.
Following an investigation, Chris Dickson, executive counsel to the Joint Disciplinary Scheme, laid complaints against Huseyin Erdal and Firuz Fehmi, partners in Erdal & Co, and Ahmed Ozdal, a former partner. The three are all members of the ICAEW, over which the JDS has jurisdiction.
Erdal & Co were the secondary auditors of Polly Peck’s packaging subsidiary in the Turkish Republic of Northern Cyprus.
Complaints against Erdal and ™zdal concern the 1988 and 1989 audits of Meyna Tarim šrnleri Sanayi ve ?Ýhracat A?¸ and its subsidiaries of Unipac Packaging Industries Limited, amongst other complaints.
The JDS’s executive committee will appoint a Joint Disciplinary Tribunal for a hearing to be staged later this year.
Stoy Hayward (now BDO Stoy Hayward) was fined £75,000 and ordered to pay £250,000 in costs for its role as auditor of the collapsed fashion house in January 2002.
Stoy Hayward had admitted to a JDS Tribunal its shortcomings ‘in failing to reassess with sufficient rigour, each year, the suitability and capability of Erdal & Co as secondary auditors’.
Polly Peck’s former chief Asil Nadir left the country prior to his trial at the Old Bailey. He is believed to be in the TRNC from where it is not possible to extradite him.