Deloitte fined £1.8m and reprimanded over Comet administration failures
Big Four accountancy firm Deloitte was today ordered to pay a fine and costs of £1.8m and “severely reprimanded” by regulators in connection with the administration of retailer Comet in 2012.
Professional body the Institute of Chartered Accountants in England and Wales (ICAEW) said today that Deloitte failed to comply with its code of ethics in connection with its appointment as Comet’s administrator.
The ICAEW found Deloitte had failed to ensure that it was sufficiently objective as the retailer’s administrator.
It fined Deloitte £925,000 and ordered it to pay costs of £890,000.
The ICAEW also severely reprimanded former Deloitte partners Neville Kahn and Christopher Farrington and fined them £50,000 and £25,000 respectively.
Taxpayers were landed with a £50m bill when Comet went bust in 2012 and hundreds of workers lost their jobs.
A Deloitte spokesperson said: “We recognise and regret that our engagement take-on processes in relation to the appointment of our partners as administrators of Comet Group Limited in 2012 were below the professional standards expected of us, as were certain elements of our work during the administration.
“The shortcomings in processes were addressed in 2016. We are committed to complying with the ICAEW’s code of ethics in order to maintain the highest standard of professional conduct.”
Kahn is a partner at Blandford Capital and Farrington is a partner at Resolve, according to their Linkedin profiles.
Kahn said: “As a professional body for the sector, I respect the views of the ICAEW. I am glad that we have come to an agreement after a very long review process and the whole matter can now be put behind us. Throughout my career I have always tried to achieve the best result for all involved, often in difficult circumstances.”
Farrington did not respond to requests for comment.