Big four accountancy firm Deloitte has got a slap on its wrist for failing to “consider the public interest” while advising on transactions involving the now defunct car company MG Rover Group.
The Accountancy and Actuarial Discipline Board (AADB), a regulator, has decided to question Deloitte’s UK arm before a public tribunal to answer for many alleged failures in the MG Rover deal.
In a formal press notice, the body said that Deloitte and Maghsoud Einollahi, a retired Deloitte corporate financier “failed adequately to consider the public interest. The firm didn’t consider “the conflicts of interest and self- interest” in advising both the car company and its parent company, called Phoenix Venture Holdings.
The folding of the car company in 2005 cost 6,500 UK jobs the AADB has been inspecting Deloitte’s role as auditor its parent company Phoenix Venture Holdings, run by the “Phoenix Four” John Towers, Peter Beale, Nick Stephenson and John Edwards.
LondonlovesBusiness.com got in touch with veteran venture capitalist Jon Moulton whose bid to turnaround the ailing car company was shot down.
“I must be one of the few people who would’ve read the full BIS report into the collapse of MG Rover. Deloitte went back home with £31m and I think a thorough and speedy investigation into the matter should put the matters to rest,” he told us
In an interview with LondonlovesBusiness.com in September Moulton said that the fate of MG Rover would have been better off had he been at the helm of affairs.
“I am sure MG Rover would have been one heck of a turnaround. I would have made sure everybody got a fair deal, especially the distraught workers who were left high and dry,” he said.