Globo Share Discussion Threads

[masurenguy] 21/12/2015 22:58

Grant Thornton to be investigated over collapse of Globo
The implosion of a Greek mobile phone software company listed in London has led to an investigation into Grant Thornton, its auditor, by the accountancy watchdog. The sudden collapse of Globo in October, amid allegations of falsified accounts, has attracted the attention of the Serious Fraud Office, the City of London Police and the Financial Conduct Authority. Questions also have been asked of Grant Thornton, given the nature of the collapse. The Financial Reporting Council has launched a formal investigation into events at the business. Grant Thornton said that it would work with the council. “Administrators have been appointed over the company [Globo] by court order and are seeking to establish what has happened to the business. We await the outcome of their inquiries,” a spokeswoman said.

Complete article:

[sikhthetech] 21/12/2015 22:00

Let's hope the FCA also have teeth and are able to see through the scam...
what do you say, Shroder...


Shroder 21 Dec'15 - 15:37 - 25465 of 25467 0 0

Absolutely, lets see if the FRC have any teeth.

[topvest] 21/12/2015 20:04

Given this "We understand that Globo Mobile S.A. and Profitel S.A. have filed for bankruptcy in Greece." you have to assume that pretty much all of the cash has gone. The bizarre turn of events is that it appears that the 49% holding in the original Greek subsidiary is one of the few real assets left of any value (i.e. the business that they tried unsuccessfully to fully divest).
Grant Thornton could be in for a bit of trouble here. With the benefit of hindsight, the BDO resignation letter and statement of circumstances quite clearly raises the RED FLAG. This should have been investigated properly by the incoming auditors.
The resignation letter process is being amended for all companies, so this might improve the situation somewhat going forward. It seems likely, again with the benefit of hindsight, that BDO had some concerns and were somewhat restricted on their audit scope to the extent that they resigned.
Things always seem clearer with the benefit of hindsight, but its clear that investors, auditors and banks have missed too many red flags. Lets hope everyone learns some valuable lessons from this mess. I have!

[7kiwi] 21/12/2015 17:31

I'm more interested in their eyes than their teeth. If they can't see this was an enormous scam that should have been picked up by the auditors, they need to go to Specsavers, not the dentists.

[captain hindsight] 21/12/2015 17:29

anyone seen jazza?

[shroder] 21/12/2015 15:37

Absolutely, lets see if the FRC have any teeth.

[roger-lawson] 21/12/2015 15:15

FRC announcement here: hxxps://www.frc.org.uk/News-and-Events/FRC-Press/Press/2015/December/Investigation-announced-in-respect-of-Grant-Thornt.aspx

[7kiwi] 21/12/2015 14:15

About time. Grant Thornton facing probe from the regulator.

[firede] 21/12/2015 11:51

Cash balance 2013 2014
Globo PLC 26,318 6,979
Globo Mobile 29,233 65,215
Profitel 7,050 7,469
Globo Total 64,089 82,762
Other Subs. 1,488 3,099

It was Globo Mobile S.A. and Profitel which were supposed to have all the cash. I really wonder how they were faking that cash balance.

[7kiwi] 21/12/2015 09:01

I seem to recall one of the subs holding a big wedge of cash and there being a large inter-group receivable due to the holding company.

[7kiwi] 20/12/2015 21:51

SO, where did all the cash that was suppose to be there go to?

Was it all a fabrication of have the directors emptied the accounts?

[topvest] 20/12/2015 21:50

Yes, a pretty poor report which doesn't really say anything much. It seems that all the cash had disappeared, albeit that is maybe just the parent company which didn't hold the group cash anyway. The Greek subsidiaries are already in administration. Shocking if that is all that is left though!

I wonder where Costis and his accomplice are now? Almost certainly they are not where they should be which is in prison or on bail awaiting a fraud charge. The world is a strange place when you can get away with this sort of thing.

[topvest] 20/12/2015 19:44

Yes, a pretty poor report which doesn't really say anything much. It seems that all the cash had disappeared, albeit that is maybe just the parent company which didn't hold the group cash anyway. The Greek subsidiaries are already in administration. Shocking if that is all that is left though!

I wonder where Costis and his accomplice are now? Almost certainly they are not where they should be which is in prison or on bail awaiting a fraud charge. The world is a strange place when you can get away with this sort of thing.

[funkmasterp12] 20/12/2015 13:19

Wow:On appointment, the Company had multiple currency bank accounts with one of the Secured Creditors, containing a total of £106.7k, and a number of accounts with UBS Wealth Management in Zurich and London, containing just over £4k in total.The proceeds of the Secured Creditor accounts were swept to the Security Trustee upon appointment. We remain in discussions with UBS in relation to obtaining both the funds held and historic bank statement data.

[aimingupward2] 20/12/2015 13:05

What I would like is to have some understanding of is whether the company set out as a fraudulent enterprise, or whether it became fraudulent only later on as a result of over ambition and commercial pressures. There's no explanation so far - perhaps we shall never know. If GBO is ever to become a classic case study for financial students, however, which perhaps it deserves to be, then this needs to be known.

[ionlypostafterbbms] 20/12/2015 10:16

Where's jazza?

I'm interested to hear his insightful take on the 44 page report.

[ionlypostafterbbms] 20/12/2015 09:55

Wow.

People need jailing for this.

[effortless cool] 20/12/2015 09:15

£180k cash is all that they left!

[smartmoney100] 20/12/2015 09:11

password: globo

[topvest] 20/12/2015 08:44

have you a link please?

[lordoflords7] 19/12/2015 23:31

44 page Report now on creditor gateway password Globo. Makes sobering reading.

[lordoflords7] 19/12/2015 23:18

44 page Report now on creditor gateway password Globo. Makes sobering reading.

[scantrader] 11/12/2015 23:58

This is it.