Kibo may buy stake in MED
They are coming under intense scrutiny in Britain over how they failed to spot company collapses and for juggling audits and more lucrative nonaudit work for the same clients.
Lawmakers have said they may formally request higher fines once the FRC published the details of its probe into PwC. They called the FRC “toothless” over its handling of the BHS audit, and the watchdog’s powers are being reviewed independently.
The documents are likely to spark fresh calls for the audit and non-audit operations of the big four audit firms to be split up.
At the core of an audit, accountants are required to say if they think a company is a “going concern”, meaning it can stay in business for the foreseeable future. The FRC looked at the audit of Taveta Group, which includes BHS, for the year ending August 30, 2014.
“There were several events or conditions that should have appeared to the respondents (PwC and Denison) to cast significant doubt over BHS’s ability to continue as a going concern and therefore to require further investigation,” the FRC said.
BHS had significant net liabilities, had had to make provision for loss-making stores, and had very significant deficits in its defined-benefit pension schemes. – Reuters AFRICA focused energy company Kibo said yesterday it had signed a memorandum of understanding to acquire a 60 percent equity interest in Mast Energy Developments (MED), a UK registered company targeting the development and operation of flexible power plants. Under the deal, the company can acquire the stake for £300 000 (R5.4 million) payable to existing MED shareholders in new Kibo shares and a share of future project revenue royalties. Kibo Energy, formerly called Kibo Mining, said it was envisaged that both parties would be able to utilise their knowledge and expertise of the power industry to assist in the development of further energy projects both in the UK and Africa. Kibo’s established portfolio of assets in southern Africa is focused on large scale energy projects. – African News Agency (ANA)