An investigation into the auditors of Greensil Capital and Wylands Bank has begun, UK accounting regulators announced on Monday.
The Financial Reporting Council (FRC) has announced that its executives have begun investigating accounting firm Saffery Champness in connection with auditing Greensill Capital (UK) Limited’s financial statements for the year ending December 31, 2019. did. We will investigate on June 15th.
Greensil Capital, a supply chain finance company that filed for bankruptcy protection in March, was scrutinized for the role of advisors, including former Prime Minister David Cameron, who lobbyed the government during the CCP (Chinese Communist Party) virus pandemic.
Lenders also reportedly poured cash into a company owned by Steel King Sanjeb Gupta from the government’s Coronavirus Large Business Suspension Loan Scheme. Financial Times..
In another announcement, the FRC said it was investigating PwC in connection with auditing the consolidated financial statements of Gupta-owned Wylands Bank for the year ended April 30, 2019.
Wylans is now on the verge of collapse after Gupta said he was withdrawing money from the bank that handed them a £ 75m loan a year ago.
CEO Stephen Rose has been allowed to talk to potential new investors to sustain the future.
The board said it expects the bank to be “solvent-based” if it fails to secure a sale to a new backer.
The Gupta Family Group Alliance (GFG Alliance) is also looking for buyers for the Liberty Steel plant in Stockbridge.
In May, the UK fraud monitoring agency began investigating the GFG Alliance on alleged fraud, fraudulent transactions and money laundering, including a link to Green Sill.
A spokesperson for Saffery Champness said: Of course, we will work fully with the FRC.
“Audit quality is an absolute priority of Saffery Champness and we are committed to maintaining the high professional standards our clients naturally expect.”
A PwC spokesperson said: For inquiries, we will fully cooperate with FRC. We share the FRC’s commitment to audit quality, and a broad program to improve audit quality across the company takes two years. “
PA contributed to this report.