Deloitte had early warning over Parmalat
Deloitte could face legal action from Hermes after the fund management group revealed it requested an investigation into Parmalat's accounts a year before the Italian company collapsed.
Link: Parmalat special report
The Maily on Sunday reported that Hermes wrote to Parmalat’s auditor, Deloitte, and its Board of Statutory Auditors in December 2002, over concerns which included the treatment of a number of Cayman Islands investments in the accounts.
Parmalat’s troubles emerged late last year after the discovery of a £2.8bn hole in a Cayman Islands-based subsidiary.
Hermes is now understood to be preparing a legal action against various parties involved in the scandal, which experts believe could be strengthened by its having alerted Deloitte to its concerns.
Deloitte said: ‘We are aware of the press reports about this letter. In Italy, there is a defined process for shareholders to make complaints to the Board of Statutory Auditors. In this case, we understand the Board subsequently investigated the matter and reported on it in the 2002 annual accounts.’