PwC picked for Northern Rock job despite past audit scandal

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PwC won a contract earlier this month to control state-run UK Asset Resolution, which manages toxic mortgages issued by Northern Rock, until 2030


PwC picked for Northern Rock job despite past audit scandal of failing to identify the bust bank’s collapse

  •  PwC was slammed for complacency before Northern Rock meltdown
  • PwC was its auditor, pocketing £12million of fees in 2006 
  • The audit sector has faced intense scrutiny after a string of scandals 

Tainted PwC has clinched a £16.5m contract to manage the Government’s remaining assets from Northern Rock – despite failing to spot the bust bank’s collapse.

The auditor won a contract earlier this month to control state-run UK Asset Resolution, which manages toxic mortgages issued by Northern Rock, until 2030.

PwC won this work even though it has previously been slammed for complacency in the run-up to the lender’s 2007 meltdown.

PwC won a contract earlier this month to control state-run UK Asset Resolution, which manages toxic mortgages issued by Northern Rock, until 2030

Northern Rock was rescued by taxpayers after becoming one of the first major casualties of the financial crisis.

PwC was its auditor, pocketing £12million of fees in 2006, and was meant to ensure its accounts were in order.

There were claims their relationship was riddled with conflicts of interest – particularly as Rosemary Radcliffe, a non-executive director at Northern Rock, was a former chief economist at PwC.

 The audit sector has faced intense scrutiny after a string of scandals, including the collapse of departnet store BHS – which PwC audited – Patisserie Valerie and Carillion. PwC declined to comment.

 

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