PracticeConsultingERF execs suspended over irregularities

ERF execs suspended over irregularities

Two senior executives at truck manufacturer ERF have been suspended following the discovery of accounting irregularities at the company.

CEO John Bryant and chief financial officer Klaus Wagner were suspended yesterday by German parent company MAN after ‘irregularities in the balance sheet’ were uncovered. These alledgedly included inflated amounts booked for trade credits to customers and increased amounts of payments receivable.

MAN AG bought the Cheshire-based truck maker last year from Western Star Trucks of Canada for $170m (£118m).

In a statement, MAN said: ‘In spite of the group’s risk management system being transferred step by step to the English subsidiary, the fact that the accounts of the company were incorrect was not discovered for several months and is now to be investigated in detail by a newly-commissioned firm of auditors.’

The irregularities are believed to amount to more than ? ¬10m (£6.3m).

Bryant joined the company in 1991 while Wagner was appointed to the board just over a year ago.

Ernst & Young stood down as auditor last year and was replaced by Deloitte & Touche.

BDO Stoy Hayward has been commissioned to investigate the irregularities.

Links

Flotation on BDO Stoy Hayward agenda

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