Big Four ‘feast’ on Carillion Taxpayer faces £150m bill for failed contractor
Accountancy giants accused over £70m fees
THE UK’s Big Four accountants have been accused of “feasting” on Carillion and the £150million taxpayer-funded clean-up.
Carillion has paid Deloitte, KPMG, PwC, and Ernst & Young more than £70million in the past decade.
PwC, which made £21.1million in Carillion fees, is now involved in the £150million liquidation.
The Official Receiver said PwC was the only one of the Big Four without an “immediate conflict of interest”.
Frank Field, Chairman of the Work and Pensions Committee, said: “The image of these compa- nies feasting on what was soon to become a carcass will not be lost on decent citizens. “The former directors of Carillion are, unlike their pensioners, suppliers and employees, all right. These figures show that, as ever, the Big Four are all right too.” He said PwC was now being paid to “preside” and had been appointed to the “lucrative position” by receivers unopposed because the accountants’ “three fellow oligarchs” were conflicted. MPs asked the four firms to reveal involvement with Carillion since 2008 ahead of a hearing this month. KPMG made almost £17million in fees directly, plus £3.4million from other Government departments on Carillion-related work, while Ernst & Young made £18.3million and Deloitte, £12million.
KPMG approved Carillion’s 2016 finances, only for the construction giant to reveal an £845million black hole in key contracts months later.
Rachel Reeves, Chairwoman of the Business, Energy and Industrial Strategy Committee, said: “KPMG has serious questions to answer.
“Either KPMG failed to spot the warning signs, or its judgement was clouded by its cosy relationship.”
Almost 1,000 jobs have now been lost since construction firm Carillion went into liquidation last month.
THE big accountancy firms have got away without being pulled up for too long.
The collapse of Carillion has once again shone a spotlight on their business practices.
MPs today reveal how the big four – KPMG, PwC, Ernst & Young and Deloitte – feasted on the failing firm’s carcass. All of them have profited from Carillion, whose bosses in turn grew fat from taxpayer-funded contracts.
Yet, somehow, the auditors refuse to shoulder any of the blame, despite the taxpayer being left £150million out of pocket.
Their macabre way of operating sees them give companies like Carillion a clean bill of health and then, when the firms go under, get rewarded by being made administrators.
There are vampires with a greater sense of shame. Let us not forget how these auditors, working as a virtual cartel, also make fortunes by helping firms avoid their fair share of tax.
It is time to end this cosy stitch-up. It is time these well-heeled accountants took responsibility for their failings.