Creditors to miss KPMG Carillion’s record £14m audit fine
Fury as creditors look set to miss out on KPMG Carillion’s record £14m audit fine as accounting body says it will keep profits
Creditors of failed subcontractor Carillion are set to lose millions after a trade body for accountants said it will deposit the proceeds of a record fine imposed on KPMG.
The Institute of Chartered Accountants in England and Wales will keep the £14.4m fine, drawing criticism from senior politicians.
Former pensions minister Baroness Ros Altmann said it was “outrageous”, while Lord Lee of Trafford, a fellow at the institute, questioned the move.
Cash appropriation: Proceeds from the record £14.4m fine imposed on KPMG for its failed audit of Carillion will be held by the Institute of Chartered Accountants in England and Wales.
The institute paid for the regulator’s investigation into KPMG, which was found to have deliberately misled regulators about its work for Carillion.
Baroness Altmann described it as “shocking” and said “the money should go to creditors and not to the accounting body”.
She said, ‘Something went wrong here.’ Lee said: ‘Do they have the right to retain all the fines when they are not the ones who have lost by failure?’
The institute said: “We expect our members to act with honesty and integrity, but this unacceptable behavior damages confidence in the profession.”