Watchdog opens investigation into Greensill Capital auditor Business News

The UK accounting watchdog has launched an investigation into the auditors of Greensill Capital, the bankrupt financial firm which had David Cameron as its adviser.

Saffery Champness checked Greensill’s books before he went bankrupt earlier this year. The Financial Reporting Council (FRC) said it was investigating Saffery Champness’s audit of Greensill’s 2019 accounts.

The Big Four PwC accounting firm has also been investigated over their audit of Wyelands Bank, a lender owned by steel magnate Sanjeev Gupta. Greensill Capital was a key lender in Mr. Gupta’s business empire.

Greensill’s disappearance in March raised concerns about the future of Mr Gupta’s GFG Alliance, which owns UK company Liberty Steel.

He also shone the spotlight on lobbying from Westminster after it emerged that Mr Cameron had unsuccessfully lobbied government ministers and senior officials for taxpayer-guaranteed loans under the government programs. emergencies introduced during the pandemic.

In May, the Serious Fraud Office announced an investigation into “suspicions of fraud, fraudulent commerce and money laundering in relation to the financing and conduct of business of the companies of the Gupta Family Group Alliance, including its agreements financing with Greensill Capital ”.

Wyelands Bank is now on the verge of collapse after Mr Gupta said he was withdrawing funds. Managing Director Stephen Rose is looking for potential investors in an attempt to save the lender.

The board said it expects the bank to be “wound up on a solvent basis” if it fails to find new backers.

A spokesperson for Saffery Champness said: “As professional accountants we owe a duty of confidentiality to current and former clients and, with this matter under investigation, it would not be appropriate to comment for the moment, except to say that Saffery Champness of course fully cooperate with the FRC. “

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This notice was published: 2021-06-28 11:38:00

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