kPMG Lied over Carillion Collapse

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BlueAnorak

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www.telegraph.co.uk

KPMG misled watchdog over Carillion audits, boss admits

Government contractor went bust in 2018 under the weight of a £7bn debt pile
www.telegraph.co.uk www.telegraph.co.uk
Staggering

Any as paywalled here's tge guts...
KPMG has admitted for the first time that it misled regulators over the audit of collapsed outsourcer Carillion, as a tribunal heard that its accountants allegedly forged documents to dupe inspectors.

Jon Holt, the chief executive of KPMG UK, apologised for the firm's behaviour in the run-up to the failure of Carillion, which was given a clean bill of health before collapsing under a £7bn debt pile in early 2018.

He said: “It is clear to me that misconduct has occurred and that our regulator was misled.”

The admission came after the Financial Reporting Council (FRC) accused auditors at KPMG of creating “forged” and “fabricated” documents in an attempt to mislead inspectors reviewing the firm’s audits of Carillion and Regenersis, another outsourcer.

Mr Holt added: "The misconduct that this tribunal will hear about over the coming weeks is disturbing and upsetting for me and for my colleagues.

The FRC opened an investigation after KPMG self-reported concerns related to the Carillion audit, and later widened it out to include Regenersis. It made the formal complaint against the firm and six employees who worked on the audits.

Mr Holt said he was “saddened” that some relatively junior former members of staff were facing “very serious regulatory sanction at an early point in their careers”.

He added: “It is of course for the tribunal to reach a conclusion on the allegations as they relate to the individuals concerned. Nevertheless, it is clear to me that misconduct has occurred and that our regulator was misled.

“We became aware of the misconduct at the centre of this case as a result of our own internal investigations and immediately reported it to our regulator. We have co-operated fully with their investigation since then.”

The FRC said that it does not allege misconduct in the performance of the relevant audits, or claim that the financial statements were not properly prepared.

The tribunal is expected to last for several weeks and will hear evidence from the FRC and the six former KPMG employees.

One former employee settled with FRC over the weekend, while the other five strongly deny all allegations.
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Are they open to being sued for this?

Carillon owed my mate's business 250k when they went bust.
 
117 M34 said:
Are they open to being sued for this?

Carillon owed my mate's business 250k when they went bust.
Click to expand...

Seems so.

news.sky.com

Official Receiver advances £1bn claim against auditor of collapsed construction firm Carillion

A claim form that could lead to a £1bn legal action against the big four auditor KPMG over its work on Carillion was filed by the Official Receiver on Friday, Sky News understands.
news.sky.com news.sky.com

No idea about your mate's business, needs to consult his own solicitor.
 
The amount of fingers in pies was unbelievable. They had massive rail contracts and were building hospitals as well as having contracts to feed kids at schools.
I worked for them on a Christmas day and a boxing day. It took a fortnight for them to pay me. 12 hour shifts on the railway.
They ripped me off I am self employed and they payed me through an umbrella company. £1800 the 20% should have been £1440. I came out with just over a grand. I payed their National insurance as well as my own their NI was more than my own.
They payed me on the Friday and I was fuming getting fobbed off by them when I rang them. I thanked my lucky stars that I got anything when they went bust a few days later.
That hospital job in Liverpool was a disgrace.
Some fucker should have gone to jail for it.
 
117 M34 said:
Are they open to being sued for this?

Carillon owed my mate's business 250k when they went bust.
Click to expand...
They avoided Cooperative Bank litigation over their mishandling of Britainia Building Society accounts and other complete accounting balls up so I think liability will be buried in a labyrinth of partner rules that will be difficult to break such that only individual partners will probably be liable.
It will cost a lot of money to get any money back and that's for sure.
 
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m7mcfc said:
The amount of fingers in pies was unbelievable. They had massive rail contracts and were building hospitals as well as having contracts to feed kids at schools.
I worked for them on a Christmas day and a boxing day. It took a fortnight for them to pay me. 12 hour shifts on the railway.
They ripped me off I am self employed and they payed me through an umbrella company. £1800 the 20% should have been £1440. I came out with just over a grand. I payed their National insurance as well as my own their NI was more than my own.
They payed me on the Friday and I was fuming getting fobbed off by them when I rang them. I thanked my lucky stars that I got anything when they went bust a few days later.
That hospital job in Liverpool was a disgrace.
Some fucker should have gone to jail for it.
Click to expand...
They built a hospital near us and got the maintenance contract I suspect to cover up how badly it was done, dodgy drains, wards floodin
g and their joint venture with telent on the telecoms for open reach was a joke. Nobody had a clue about the network and they cut the rates for engineers after putting in a ridiculously low bid to get the contract.
 
m7mcfc said:
The amount of fingers in pies was unbelievable. They had massive rail contracts and were building hospitals as well as having contracts to feed kids at schools.
I worked for them on a Christmas day and a boxing day. It took a fortnight for them to pay me. 12 hour shifts on the railway.
They ripped me off I am self employed and they payed me through an umbrella company. £1800 the 20% should have been £1440. I came out with just over a grand. I payed their National insurance as well as my own their NI was more than my own.
They payed me on the Friday and I was fuming getting fobbed off by them when I rang them. I thanked my lucky stars that I got anything when they went bust a few days later.
That hospital job in Liverpool was a disgrace.
Some fucker should have gone to jail for it.
Click to expand...

You were on £75 per hour top line?

Are you Paul Pogba?
 
Nellies left peg said:
They built a hospital near us and got the maintenance contract I suspect to cover up how badly it was done, dodgy drains, wards floodin
g and their joint venture with telent on the telecoms for open reach was a joke. Nobody had a clue about the network and they cut the rates for engineers after putting in a ridiculously low bid to get the contract.
Click to expand...
Seemingly you have an extremely good understanding as that second bit is nail on head............
 
Well I'm shocked.


I expect fuck all to happen to them In terms of punishment.
 
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