Deloitte fined record amount over MG Rover failure image

The accountancy firm failed to manage its conflicts of interest in its advice to collapsed British carmaker MG Rover Group and subsequently has been fined a record 14 million pounds ($22 million).

The Financial Reporting Council, the administration that brought to court the case against Deloitte Touche Tohmatsu Limited also declared an independent tribunal has also backed the watchdog’s call for a severe reprimand of the company. Deloitte is one of the “Big Four” professional services firms along with PricewaterhouseCoopers, Ernst & Young, and KPMG. Deloitte is the largest professional services network in the world by revenue and has 193,000 employees in more than 150 countries providing audit, tax, consulting, enterprise risk and financial advisory services. In financial year 2012 alone, the company earned a record $34 billion USD in revenues.

In July the tribunal found that all 13 allegations in the MG Rover scandal the FRC had brought against Deloitte were proven. The tribunal also agreed to a fine of 250,000 pounds for Maghsoud Einollahi, a partner with Deloitte at the time. He has also been banned from the profession for three years.

Via Reuters