PracticeConsultingExclusive – Andersens faces probe over role as TransTec receiver.

Exclusive - Andersens faces probe over role as TransTec receiver.

Arthur Andersen could face a formal investigation following its appointment as administrative receiver to bankrupt engineering company TransTec. The Big Five firm was appointed last month when the company, founded by former minister Geoffrey Robinson, collapsed with debts of more than £70m. It has been accused of breaking English ICA rules by accepting the work. Several insolvency sources have raised objections to the appointment because of Andersens’ previous corporate finance work for TransTec. A year ago, the firm assisted in a £32m disposal of the company’s measurement business. This could place the firm in breach of institute ethical guidelines that state a firm should not accept an insolvency appointment if an employee has carried out any ‘material professional work’ for the client in the preceding three years. One senior regulator said: ‘I would have thought that £32m would be material and presumably they were hoping to get additional work as well.’ An Andersens’ spokesman vigorously denied there had been any wrongdoing, describing it as a one-off deal. He added that the three individuals appointed to the receivership – Murdoch McKillop, John Talbot and David Duggins – had considered the position carefully before accepting the job. A source close to the institute’s ethical standards office said that an investigation did not require a formal complaint to be made, but could be triggered because of the high-profile nature of the case.

Related Articles

5 tips for SMEs to protect cash flow

Accounting Software 5 tips for SMEs to protect cash flow

5m Alia Shoaib, Reporter
Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

Consulting Tyrie on Finance Bill 2017: ‘Making Tax Policy Better’

11m Stephanie Wix, Writer
Managing partner Q&A - the year ahead: Richard Toone, CVR Global

Accounting Firms Managing partner Q&A - the year ahead: Richard Toone, CVR Global

12m Kevin Reed, Writer
Deloitte 'self-imposes exile' on government contracts to defuse PM row

Accounting Firms Deloitte 'self-imposes exile' on government contracts to defuse PM row

12m Kevin Reed, Writer
Managing partner Q&A - the year ahead: Julie Adams, Menzies

Accounting Firms Managing partner Q&A - the year ahead: Julie Adams, Menzies

12m Kevin Reed, Writer
Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

Business Regulation Friday Afternoon Live: Deloitte's tech thing; PAC wants HMRC 'contingencies'; and Sports Direct

1y Kevin Reed, Writer
Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

Audit Friday Afternoon Live: HMRC complaints rise; Deloitte scoops big audits; and corporate reporting woes

1y Kevin Reed, Writer
New head of equity capital markets for KPMG

Accounting Firms New head of equity capital markets for KPMG

1y Stephanie Wix, Writer