Deloitte and one of its former partners have been hauled by the Accountancy and Actuarial Discipline Board before a public tribunal to answer for their misconduct over their links to the businessmen, who presided over the collapse of British carmaker MG Rover.
In 2005 MG Rover was put into administration with the loss of 6,000 jobs and debts of 1.4 billion pounds ($2.2 billion).
Four of the company’s directors set up Phoenix Four to buy MG Rover from BMW AG in 2000. But in 2011 they were disqualified as directors being accused of paying themselves 40 million pounds in salaries and pensions before the company collapsed in 2005.
Deloitte said it was confident that after considering all evidence, the “tribunal will conclude that there is no justification for criticism of either Deloitte or our former partner Mr. Einollahi.”
In 2011 the Accountancy and Actuarial Discipline Board (AADB) opened a probe in Deloitte, which audited Maghsoud Einollahi and MG Rover. The AADB had filed a formal complaint which stated that the “conduct of Deloitte & Touche and of Mr Einollahi fell short of the standards reasonably to be expected” regarding objectivity and due care.
“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 Mr Einollahi,” Deloitte said.
The complaint is expected to be dismissed at a public hearing.