Polly Peck auditors 'reprimanded'
Three ICAEW members and partners of a firm in Northern Cyprus have been 'reprimanded, admonished and fined' by the UK accountancy watchdog for their role in the collapse of Polly Peck International.
Huseyin Erdal and Firuz Fehmi, partners in Erdal & Co, and Ahmed Ozdal, a former partner were the secondary auditors of Polly Peck’s packaging subsidiary in the Turkish Republic of Northern Cyprus.
The Joint Disciplinary Tribunal ordered the three to pay £125,000 towards the costs of the executive counsel.
Erdal & Co were responsible for auditing the results from the subsidiaries and then reporting them to Stoy Hayward, the group auditor.
Polly Peck, a former FTSE-100 darling, collapsed in October 1990 under the chairmanship of Asil Nadir with debts totalling £551m.
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.