Chris Dickson, executive counsel to the JDS, has been working on the investigation for four and a half years, and is expected to be critical of the Big Four firm.
In the summer, Stephen Ives, one of the partners working on the audit of Capital, was referred to a disciplinary tribunal over his role in the affair. Ives missed one tribunal before Christmas due to illness, and will now face the allegations in March.
Two former directors of Capital, Des Pereira, once acting finance director, and Kenneth Thompson, formerly acting chief executive, were issued a writ by the remaining directors in August 1997, after leaving the company over concerns at the way it was being run.
The writ was dropped by new owner Stanley Leisure shortly after it purchased the group, which owned high-rolling London casino Crockfords, in 1999 for a knock down price of £86m. Stanley Leisure at the time expressed its ‘regret that any litigation was commenced’.
Pereira also consulted the ICAEW ethical committee in July 1996 over his concerns about how the company was being run. A statement issued in 1999 by the then director of the committee John Denney, said that: ‘Pereira acted throughout in accordance with the ethical standards expected of a chartered accountanct.’
Should Deloitte be criticised by the JDS, pressure will continue to mount on chief executive John Connolly. Liberal Democrat MP, Norman Lamb, called for his resignation last week over his involvement in the Barlow Clowes scandal in the 1980’s.
A spokeswoman for Deloitte said the firm has ‘no indications of the findings of the report’ and that it believes it behaved properly throughout. She added that Deloitte does not know when the report will be handed over by the JDS.
HMRC breaches client confidentiality; and partner profits fall at EY. These stories and more discussed in Friday Afternoon Live
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