Knighthood for Tesco scandal accountant

Gong for PwC boss after firm missed black hole at grocer

THE millionaire former boss of accountancy giant PwC has been given a knighthood – despite his firm facing heavy criticism after a string of scandals.

Ian Powell, who was chairman and senior partner of the company’s UK arm, has been rewarded for his work in the professional services industry.

His time in charge saw PwC attacked for signing off the accounts of failed lender Northern Rock and failing to spot a multi-million pound black hole at supermarket chain Tesco.

The 60-year-old is the biggest name in a list of leading City lights to be recognised this year.

Others include former pensions minister Steve Webb, who was also knighted, and Simon Walker, former head of the Institute of Directors, who picked up a CBE.

Powell’s knighthood is likely to spark concern from campaigners, who have long accused accountancy firms of cosy relationships with politicians and big business.

In 2011 the House of Lords attacked his firm’s work as auditor of Northern Rock whose failure helped trigger Britain’s financial crisis. Peers accused PwC of overlooking concerns about the Rock’s books in 2006 and said there were ‘grave defects’ in the entire auditing industry – claims Powell denied.

Industry watchdogs are still investigating PwC’s handling of Tesco’s accounts after a 2014 scandal in which the supermarket admitted its profits had been overstated by £326m. It led to a share price slump and the resignation of the retailer’s chairman.

Powell, a father of four, is thought to have houses in Covent Garden, Cheshire and Devon, and is a fan of powerboats and motorsport. He is due to become chairman of outsourcer Capita and was paid £3.8m by PwC for the year to June 30.

The honours list also saw Jeremy Sinclair, chairman of advertising giant M&C Saatchi, get a CBE. Nick Jones, founder of media club Soho House, received an MBE.