Deloitte UK is to face a Accountancy &
Actuarial Discipline Board (AADB) tribunal hearing next year over
the firm’s role as advisers to the collapsed car manufacturer MG
Rover. The AADB dismissed Deloitte’s bid to drop parts of the
Deloitte requested allegations over project
aircraft be removed from the hearing but the AADB dismissed these
requests after a two-day day hearing involving the firm and its
former M&A partner Maghsoud Einollahi.
Project aircraft refers to tax transactions
connected to the purchase of MG Rover by a group of businessmen
known as the Phoenix Four. These transactions are said to have
earned MG Rover and the Phoenix Four millions of pounds.
The AADB’s formal complaint, issued in
February, alleges Deloitte and Einollahi failed to adequately
consider the public interest and the potential for there to be
different commercial interests between the Phoenix Four, MG Rover
Group and associated companies and shareholders.
The AADB’s four week hearing begins on 4 March
2013 with a one day preliminary hearing set for 11 January.
Deloitte UK facing AADB inquiry over MG Rover