Deloitte chairman cleared on Capital charges

Deloitte chairman Martin Scicluna has been cleared of charges brought against
him by the Joint Disciplinary Scheme.

In a statement, the Joint Disciplinary Tribunal said that it was dismissing
complaints brought by the JDS’s executive counsel.

The JDS had brought three complaints against Deloitte as part of the case,
one of which was dropped during the tribunal process, the tribunal said.

The charge against Scicluna had been that he had failed to report Deloitte
partner Stephen Ives to the ICAEW for his conduct in relation to the audit of
Capital Corporation.

The tribunal said in relation to the charge that ‘The threshold of reporting
or not is matter for judgment, and as with other judgment there is a range of

It added that if there was a duty to report, it would fall on the then senior
partner, and not on Scicluna.

On a separate charge, that Deloitte should have been fuller in its criticism
of a deteriorating control environment at Capital in the mid-1990s, the firm was
also cleared.

Deloitte argued that its initial thought that the control environment had
deteriorated was not in fact an accurate representation of the situation.

The Tribunal decided, after hearing the evidence, that ‘a member or member
firm in good standing could properly come to the view that there had or had not
been deterioration in the control environment.’

It added: ‘Whereas the executive counsel can hardly be criticised for
attributing to Deloitte their own view as initially expressed in the early
drafts of the chairman’s statement, our task has been to assess the evidence
objectively. On the basis of this finding Complaint 1 falls to be dismissed.’

More to follow.

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