PracticeConsultingBDO to face disciplinary over Polly Peck

BDO to face disciplinary over Polly Peck

BDO Stoy Hayward is to face an accountant's disciplinary tribunal over its role as auditor of defunct fashion house Polly Peck International.

Following an investigation, Chris Dickson, executive counsel to the Joint Disciplinary Scheme, has laid complaints against BDO concerning the audits of PPI’s accounts for the years ending 31 December 1986, 1988 and 1989.

Complaints have also beenblaid against the firm for its work as reporting accountants for a Rights Issue in 1989.

A Joint Disciplinary Tribunal will be appointed to deal with the matter.

In July 1989, BDO paid £26m to settle negligence claims brought by PPI joint administrator Deloitte & Touche.

Polly Peck, a FTSE-100 company worth £1.7bn at its peak, collapsed in October 1990 with borrowings of £522m.

Company boss Asil Nadir still has criminal charges outstanding against him arising from the affair. He has fled to Northern Cyprus where he lives in exile.

Chris Swinson, senior partner at BDO,: ‘This is another stage in a long drawn out process. We would have liked to have see it over a long time ago. The events that the tribunal will be considering happened a long time ago.

‘The firm is very different now. Two of the partners involved are now dead. The period of time is causing us quite a lot of difficulty. These things have got to be looked into, but it isn’t very easy when it’s this long ago.’

The case against BDO had been put on hold until the civil actions against Polly Peck were settled.

Links

JDS website

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