At that time Richard Carr took over as CEO, while the following year Bill Jeffrey became finance director and Richard Parkin became group financial controller.
Carr qualified as an accountant with Peat, Marwick Mitchell & Co, while Jeffrey and Parkin qualified with Coopers & Lybrand.
All three face stinging criticism in the DTI report which is now being considered by the Accountants Joint Disciplinary Scheme.
Carr faces particular criticism because he was the chief executive and failed to disclose to the TransTec board the £11m settled with the Ford Motor Company in August 1997 for breach of contract.
He also stands accused of authorising or approving statutory accounts for 1996 to 1998 and interims for 1997 to 1999 which failed to pro-vide for the Ford claim adequately and therefore ‘did not show a true and fair view’.
The ideas for how to account for the settlement with Ford came from Jeffrey, according to the inspectors. He faces the same criticism for his handling of the issue.
Parkin, who succeeded Jeffrey as FD in March 1998, is said by the inspectors to have failed to app-reciate the role and responsibilities of a company director.Though he took no part in the arrangements with Ford, the inspectors say Parkin should have been concerned enough to raise the alarm with the company chairman and audit committee by the time of the audit for 1998.
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