PracticeConsultingBDO rolls into truck manufacturer

BDO rolls into truck manufacturer

BDO Stoy Hayward has been called in at truck manufacturer ERF following the discovery of accounting irregularities at the Cheshire-based company.

The move came after the suspension of ERF’s chief executive John Bryant and finance chief Klaus Wagner by parent company, German-based MAN, pending the outcome of the investigation.

The irregularities, believed to be more than Ï10m (£6.3m), allegedly included inflated trade credits to customers and increased amounts of payments receivable.

MAN bought the truck maker from Western Star Trucks of Canada for $170m (£118m). Last year the company launched a £44m investment programme covering two new trucks and a new assembly plant.

Bryant joined the board in April 1991, becoming managing director three months later. Wagner was appointed to the board just over a year ago.

In a statement, MAN said: ‘In spite of the group’s risk management system being transferred to the English subsidiary, the fact that the accounts of the company were incorrect was not discovered for several months and is now to be investigated by a newly commissioned firm of auditors.’

The firm appointed, BDO, is also the auditor for MAN in Germany. A spokesman refused to comment further on the investigation and would not say whether it would cover the work of the company?s UK auditors.

Ernst & Young stood down as auditor in March last year and was replaced by Deloitte & Touche.

A spokesperson for Deloittes declined to make any comment.

Links

ERF website

MAN website

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