The UK Accountancy and Actuarial Discipline
Board (AADB) has filed a formal complaint against Deloitte UK and
its retired partner Maghsoud Einollah over the role they may have
played in the collapse of MG Rover.
The AADB’s complaint to its independent
disciplinary tribunal points at the connection to Deloitte and
Einollahi in relation to the four individuals known as “the Phoenix
Four”, who bought MG Rover more than ten years ago.
The AADB said the formal complaint alleges
that Deloitte and Einollahi failed to adequately consider the
public interest; the potential for there to be different commercial
interests between the Phoenix Four, MG Rover Group and associated
companies and shareholders.
Deloitte was MG Rovers corporate finance
advisor as well as auditor at the time.
The AADB said that consequently Deloitte and
Einollahi, “fell short of the standards reasonably to be expected
of Institute of Chartered Accountants in England and Wales (ICAEW)
members and member firms.
Deloitte said in statement the firm is
“disappointed” over AADB’s that limited aspects of the advisory
work relating to two transactions in 2001-2 fell short of
acceptable standards.
“We do not agree with the AADB and are
confident that when all the evidence is considered, the tribunal
will conclude that there is no justification for criticism of
either Deloitte or our former partner Einollahi,” Deloitte
said.
