AN INVESTIGATION into British medical staffing company Healthcare Locums (HCL) has found accounting errors.
HCL bought the business and assets of Redwood Health for £6.7m from John Cariss in August last year. Cariss is the husband of HCL’s currently suspended vice-chairman and founder Kate Bleasdale.
Redwood Health’s auditors, Haines Watts, refused to sign off on the sold company’s accounts.
Haines Watts cited a failure by Redwood to produce proper documentation relating to four months in 2009. Redwood Health lacked information regarding payroll and sales figures during this period. The auditors also claimed Redwood Health failed to account for £351,000, debited from its profit and loss account.
Haines Watts said problems with the accounts meant it was “unable to form an opinion as to whether the financial statements give a true and fair view of the state of the company’s affairs”.
Earlier this month HCL ceased trading shares and suspended both the CFO Diane Jarvis and vice-chairman Kate Bleasdale pending an investigation into accounting irregularities.
A statement from the company said: “Serious accounting irregularities have been brought to the attention of the board as a result of which the company will be carrying out an immediate investigation to consider the financial implications.”
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