PracticeAuditDeloitte face AADB disciplinary for MG Rover

Deloitte face AADB disciplinary for MG Rover

Accountancy and Actuarial Discipline Board files complaint against Deloitte and a former partner over their role in collapse of MG Rover

THE PROFESSION’S watchdog has filed a formal complaint to its disciplinary arm against Deloitte, and its former partner over the collapse of car maker MG Rover.

The Accountancy and Actuarial Discipline Board, (AADB) a regulator of the profession, has filed a formal complaint against Deloitte and its retired partner Maghsoud Einollahi, to its independent tribunal arm for their role in the collapse of MG Rover.

The AADB’s main concern is over the relationship of Deloitte with the “Phoenix Four”, a quartet of businessmen who led the purchase of MG Rover from BMW in 2000.

The Phoenix Four were disqualified as directors by the Insolvency Service following an investigation that they had received large financial rewards from the company before its failure in 2005.

Deloitte and corporate finance partner Einollahi gave corporate finance advice to the Phoenix Four and MG Rover, as well as working with the car maker as its auditor. The AADB alleges they failed to adequately consider the public interest.

A statement from the watchdog said: “The conduct of Deloitte & Touche and of Mr Einollahi fell short of the standards reasonably to be expected of ICAEW members and member firms.

The complaint does not relate to audit work undertaken by Deloitte.

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