PracticeConsultingMP criticises fraud scandal handling

MP criticises fraud scandal handling

Austin Mitchell MP launched a stinging attack this week on the English ICA for its handling of a major fraud scandal, reports Phillip Inman.

The Labour backbencher, a long-standing critic of the profession, said the scandal revealed how the ?accountancy trade associations? and successive governments had ignored money laundering.

He made his comments in a 54-page analysis of the institute?s investigation into allegations that Italian oil company Agip was at the centre of a major fraud. Mitchell claimed the affair, which took place in the early 1980s, revealed a major money-laundering scam.

He said the institute failed to investigate the allegations before declaring ?there was no case to answer? against the accountants connected with the affair.

An institute spokeswoman rebutted Mitchell?s claims, and said they had been overtaken by events and were no longer relevant. She said the UK government and EU had overhauled money-laundering regulations, and the institute had reviewed its disciplinary procedures.

She added most accountants were aware of the need to report suspicious movements of money, so ?cases like this are much less likely to arise now?.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer