Probe censures Deloitte over Phoenix Four advice
THE UK’s corporate governance regulator has criticised accountancy firm Deloitte’s advice during the controversial 2005 takeover of MG Rover, saying the firm’s conduct “fell short of the standards” expected.
Deloitte – and then-corporate finance partner Maghsoud Einollahi – acted as adviser to companies involved with MG Rover and the so-called Phoenix Four directors. The investigation will now be referred to a tribunal.
“We are disappointed that the AADB has taken the view that limited aspects of our advisory work relating to two transactions in 2001-02 falls short of acceptable standards,” said Deloitte in a statement.
“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.”