Ernst & Young has been asked to carry out a value-for-money probe of the government’s controversial part-privatisation of the Tube network, writes Philip Smith.
In what will be seen as a test of the firm’s independence, E&Y has been called in by transport secretary Stephen Byers to assess the plans ahead of announcing successful bidders for the #13bn contracts.
E&Y is already running the nation’s railway system after Byers pulled the plug on Railtrack last month.
The move came as Byers launched a charm offensive revealing how London’s hard-pressed commuters would benefit from investment in the underground system.
The deals will also be investigated by the National Audit Office, but only after they have been signed.
Byers said: ‘If the project does not prove better value for money than the alternatives then it will not proceed.’
Controversy surrounds the part-privatisation deals, with London Mayor Ken Livingstone (left), and transport commissioner Bob Kiley launching several challenges. Deloitte & Touche was dragged into the row after the publication of its damning report on the plan, which was later criticised for containing ‘inaccuracies, misunderstandings and unsubstantiated statements’.
PwC: D&T Tube report not ‘balanced’ www.accountancyage.com/ Public+Services/1125088.
Two new audit partners have been appointed at the firm BDO in its audit practice following continued growth and investment
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
Six new partners have been revealed by top ten firm Mazars
Investment in people, tech and businesses impacts on EY's profit per partner figure