Mayflower Share Discussion Threads

[soysoy] 15/7/2004 17:27

Accountancy investigators query Mayflower audits

MARK SMITH July 15 2004

AN investigation has been launched into the audits of Mayflower Corporation, the bus and coach-maker that collapsed into administration after the disclosure of accounting irregularities at its Stirlingshire-based TransBus International operation.
The Falkirk-based bus maker, which had been the headquarters of Mayflower's largest unit, was bought by Edinburgh merchant bank Noble Grossart along with Scots business heavyweights David Murray, Brian Souter and Ann Gloag in a fire sale run by administrator Deloitte & Touche, for £90m.
The consortium also acquired TransBus operations in Wigan, Lancashire, and Guildford in Surrey as part of the same deal in May.
The Falkirk business was formerly Walter Alexander, before it was bought by Mayflower in 1995.
The Accountancy Investigation and Discipline Board yesterday said it will examine the work of PricewaterhouseCoopers and Arthur Andersen, Mayflower's former auditors.
It will also look at the conduct of David Donnelly, Mayflower's former finance director who announced his departure from the company shortly before the business collapsed.
The AIDB said that it was investigating the "conduct of the audits of the financial statements of Mayflower Corporation and its subsidiaries for the years ended 31 December 2000, 2001, 2002 and 2003", and the "conduct of a review of the interim financial statements of Mayflower and its subsidiaries as at 30 June, 2003".
When asked if the findings of its investigation would be passed on to the department of trade and industry for a further – and potentially more serious – investigation, a spokesman said: "The AIDB certainly has channels of contact with the DTI and other investigative bodies."
The investigators are likely to look in particular at accounting irregularities at TransBus, which Mayflower announced in March.
These irregularities revolved around Mayflower's failure over a four-year period to make full payments to HSBC, which had been running an invoice-discounting scheme on its behalf.
The disclosure of these arrears was the last straw for Mayflower's lenders, which had seen the company's debt climb towards £200m against a £160m emergency facility, and a few days later Deloitte was called in.
The operation, which was 30%-owned by bus maker Henlys, had also faced increased overheads and competition from European rivals, causing a 16% drop in half-year group profits last August.
Although the other UK businesses and a German operation have also been sold, the firm's US heavy truck and light vehicle business did not enter administration and continues to operate.
The Mayflower investigation is the first inquiry by the AIDB, set up in May as part of a new independent regulator for the accounting profession to deal with allegations of misconduct against accountants.
The group, which said the investigation will likely take "several months", can seek to impose unlimited fines on firms or individuals, or have them expelled from professions' representative bodies.

[soysoy] 14/7/2004 22:41

Auditor PwC caught in Yukos class action suit

PricewaterhouseCoopers has been dragged into the dispute over unpaid taxes involving the Russian oil company Yukos.
Yukos founder Mikhail Khodorkovsky was arrested by the Russian authorities last October and is currently on trial for tax fraud. Yukos and Khodorkovsky are said to be negotiating with the government to find ways to settle tax debts of $5bn-$10bn to save the company from bankruptcy.

To add to the problems of Yukos, and its auditor PricewaterhouseCoopers, shareholder Roxwell Holdings filed a class action complaint in a New York district court accusing the company of misrepresenting its tax liabilities in its financial results.

The complaint (available online as a 27-page PDF) is based on audits prepared by the Russian tax ministry alleging that Yukos set up front companies in low tax jurisdictions to siphon off revenue and reduce its tax.

As a result, Yukos materially understated its earnings, the claim alleged. The defendants named in the complaint include PwC's Russian, UK and US partnerships along with PWC International, the umbrella organisation based in New York.

As indpendent outside auditor to Yukos, PwC certified the company's year-end financial statements during the alleged tax dodges. In certifying the company's 2002 statements and 2003 interims, the Roxwell complaint alleged that PwC claimed it had conformed with accepted auditing practice. The auditor's statements were false and misleading, the case alleged, as PwC either knew the audits had not been performed in accordance with professional guidance, or was reckless in failing to discover that its audit/reviews departed from professional norms.

Ekaterina Shapochka, head of marketing for PwC Russia, said the firm would not comment on the allegations made in the Roxwell claim.

"We firmly stand behind the quality of the work performed in our audits and their compliance with applicable professional standards. No proceedings have been served on ZAO PricewaterhouseCoopers Audit and any proceedings which are served will be defended vigorously," she said.

Answering your third question, I should say that "PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity.


AccountingWEB 12-Jul-2004
Categories: Audit, Firms, International (non-UK)




Copyright © 2001 Sift Group Ltd. All rights reserved.

[soysoy] 14/7/2004 22:37

FSA under fire

The FSA is not having a good week ahead of its general meeting on Thursday.
First it embarrassed itself over the Paul Davidson appeal - the tribunal hearing the appeal had to discharge itself because one of the QCs discussed the case with his neighbour whilst out walking the dog. Unfortunately, his neighbour is the FSA's enforcement committee chairman.

Now the Conservatives are biting: they would radically prune the remit of the Financial Services Authority if elected Given the current criticism of the City regulator among UK companies, that would not be unwelcome.

Oliver Letwin, the shadow Chancellor, said that the Conservatives would bring about a "change of regime" at the City watchdog, to deal with increasing complains that companies are being swamped with demands from the regulator.

Letwin's comments are apparently based on a survey of 200 British companies and trade bodies which has been carried out by the Centre for Policy Studies. The results of the survey are not due until October, but responses leaked in a recent newspaper suggest serious criticism of the "excessive" amount of regulation carried out by the FSA.

However, it is questionable how much the Conservatives can really do; supporters of the FSA point out that it is carrying out its remit to implement directives both from the UK government and from the European Union - and 70 per cent of requirements it passes on to companies come from Brussels.


AccountingWEB 13-Jul-2004
Categories: Finance, Business, Government




Copyright © 2001 Sift Group Ltd. All rights reserved.

[anomalous] 14/7/2004 19:29

>Soysoy
Please contact me this evening after 20:00 (8pm)

[soysoy] 14/7/2004 17:50

EVAN MADE INTO USA PREES

[soysoy] 14/7/2004 17:48

Watchdog to Probe Mayflower Auditing



The Associated Press
An accounting watchdog said Wednesday it will probe the auditing procedures at Mayflower Corp. PLC, a collapsed British engineering company with operations in the United States.

Mayflower was declared bankrupt and handed over to an external administrator, professional services firm Deloitte Touche Tohmatsu, in March with debts of almost $356 million.

Deloitte is now selling various assets and divisions to recoup some of the losses for investors; all British-based businesses and a German operation have been sold.

The Accountancy Investigation and Discipline Board, or AIDB, said it plans to investigate auditing at Mayflower and its subsidiaries in the last four years by the group's former auditors, PriceWaterhouseCoopers and Arthur Andersen.

It said it would also be looking at the conduct of Mayflower's former finance director, David Donnelly.

The probe will be the first by the AIDB since it was created in May as part of a new independent accountancy regulator, the Financial Reporting Council, and comes after demands for an inquiry by unions and others. The AIDB is empowered to impose unlimited fines on firms or individuals or to have them expelled from the profession's representative bodies.

Early analysis of the British company's collapse has revealed accounting irregularities, a string of bad acquisitions and, crucially, a failure by the company to comply with regulations that require a certain number of independent directors to sit on its board.

AIDB investigators are likely to look in particular at accounting irregularities at Transbus International Ltd., which builds London's distinctive single and double-decker buses. It has been sold to a consortium led by Edinburgh-based investment group Noble Grossart.

The company's U.S. truck and light vehicle building business, Mayflower Vehicle Systems Inc., is based in Farmington Hills, Mich., and employs more than 1,500 U.S. workers, including at manufacturing plants in Kings Mountain, N.C., Norwalk and Shadyside, Ohio, and South Charleston, W.Va. The business continues to operate.



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[soysoy] 14/7/2004 07:27

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FRONT PAGE - COMPANIES & MARKETS: Mayflower audits to be probed
By Andrew Parker Financial Correspondent
Financial Times; Jul 14, 2004



An investigation has been launched into audits of Mayflower, the bus maker that collapsed into administration after the disclosure of accounting irregularities.

The Accountancy Investigation and Discipline Board is to examine the work of PwC and Andersen, Mayflower's former auditors.

It will also look at the conduct of David Donnelly, Mayflower's former finance director.

The Mayflower investigation is the first inquiry by the AIDB, set up in May as part of a new independent regulator for the accounting profession to deal with allegations of misconduct against accountants. It can seek to impose unlimited fines on firms or individuals, or have them expelled from the profession's representative bodies.

Mayflower said on March 29 that "accounting irregularities" at TransBus, its bus-making division, were expected to increase the group's debt "by less than £20m".

The findings coincided with the resignations of John Simpson, chief executive, Mr Donnelly, and John Fleming, joint managing director. Deloitte, the accounting firm, was appointed as Mayflower's administrator on March 31. It later said the group's debt of about £250m meant shareholders would not get any money back.

The AIDB investigation will look at audits of Mayflower's accounts over the past four years because the irregularities allegedly date from 2000.

Mayflower restated its 2001 and 2002 financial statements in February last year after adopting a more conservative accounting policy on revenue recognition. PwC audited Mayflower's 2002 accounts, and had begun work on the 2003 financial statements before the company went into administration. The AIDB said it would look at work by PwC on Mayflower's 2003 interim financial statements.

Andersen, the accounting firm destroyed in the Enron scandal, audited Mayflower's 2000 and 2001 financial statements.

The AIDB has powers to examine the work of firms and individuals who belong to the profession's representative bodies.

PwC is a member of the Institute of Chartered Accountants in England and Wales, as was Andersen. Mr Donnelly is a member of the Association of Chartered Certified Accountants.

Cameron Scott, AIDB executive counsel, said: "The fact that a significant listed company has gone into administration amidst indications of accounting irregularities is a matter which the ICAEW, ACCA and we feel raises important issues affecting the public interest.

"Therefore the AIDB has launched an investigation into the conduct of the audits and the conduct of the former finance director."

PwC said it would co-operate with the AIDB investigation. "We stand by our work," it added. Andersen's former UK partnership and Mr Donnelly were not available for comment.


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[soysoy] 14/7/2004 07:23

Mayflower audits to be probed - report
•Website •Fundamentals •Share Price




LONDON (AFX) - An investigation has been launched into the audits of
Mayflower Corp PLC, the bus maker that collapsed after the disclosure of
accounting irregularities, The Financial Times reported.

The FT said that The Accountancy Investigation and Discipline Board is to
examine the work of PwC and Andersen, Mayflower's former auditors, as well as
the conduct of former finance director David Donnelly.

The Mayflower investigation is the first inquiry by the AIDB, set up in May
as part of a new independent regulator for the accounting profession to deal
with allegations of misconduct against accountants.

It will look at audits of Mayflower's accounts over the past four years.

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el/slm/

[soysoy] 13/7/2004 23:18

thanks for that jaknife
there will be more to come IN NEXT FEW DAYS

[soysoy] 13/7/2004 17:51

WILL THIS HELP ANYONE ,I DONT THINK SO

[soysoy] 13/7/2004 17:50

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NATIONAL NEWS: FSA acting too tough, say Tories
By David Buchan
Financial Times; Jul 12, 2004



The Financial Services Authority has too wide a regulatory role and is too heavy-handed, according to Conservative shadow ministers who say they would like to scale back the agency's duties if their party wins the next election.

Tory party officials said they had no intention of abolishing the FSA, although in an interview with The Sunday Telegraph Oliver Letwin, the shadow chancellor, said: "The current legal structure is causing the FSA as a matter of duty to over-regulate."

The opposition is concerned the government might seek, perhaps as a result of its drive to reduce civil service numbers, to transfer yet more regulatory functions from the Department of Trade and Industry to the FSA. One reason for objecting to any further transfer, according to an internal Conservative party memo, is that businesses are cautious about criticising it "for fear of retaliatory regulatory initiatives".

The party has commissioned the Centre for Policy Studies to canvass the views of financial businesses to identify "uncompetitive aspects of FSA regulation".

Conservatives say they will await the think-tank's report before coming to any conclusions, but shadow ministers think "the FSA is struggling to discharge its existing responsibilities and is not well-placed to take on yet more". David Buchan


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[soysoy] 13/7/2004 17:46

Do you feel lucky
did I fire six shots or five
Go make on my day

[soysoy] 12/7/2004 20:11

is there conection from mayflower directors working for man group does anyone know anything

[soysoy] 11/7/2004 21:53

RICA I THINK WE ARE JUST PLAYING IN OLD BOYS CLUB WHO HAVE NO GUTS

[soysoy] 11/7/2004 21:51

SORRY HAVING MAD HALF HOUR
BECAUSE I FEEL SO SOUR
ARE HOUR IS NEAR
AND ARE PLEASURE WILL BE DEAR

[soysoy] 11/7/2004 21:44

A brave man once requested me,
to answer questions that are key.
Is it to be or not to be?
And I replied 'Oh why ask me?'

[soysoy] 11/7/2004 21:33

GO ON PUCNK MAKE MY DAY

[ricra] 11/7/2004 20:41

I have never understood why the banks pulled the plug. Other companies trade with far greater losses. Why was everything sold with such indecent haste????

[soysoy] 11/7/2004 13:55

Would you let mayflower directors ,direct traffic?......ANS.....NO.....
WELL WHY IS ONE STILL DIRECTOR AT MAN GROUP

The decision followed the debacle at Mayflower Corporation, which is now in administration.

Chris Chambers, head of Man Investments, was a non-executive director on the board when the problems arose at the engineering group.

He resigned from the post on April 13.

Mayflower went into administration on March 31 after it revealed a series of accounting irregularities, prompting its creditors to withdraw their support.

Harvey McGrath, chairman of Man Group, said the decision to review the merits of senior staff at Man taking up non-executive directorships was "simply a case of sensible business management.

"In the light of the increasing responsibility - and therefore the level of personal commitment and time - the role of a non-executive director now carries, as well as our own operational demands, we would want to review very closely the pros and cons of any executive director taking on additional responsibility at this time."

In an interview with the Financial Times in May, Stanley Fink, chief executive of Man Group, said he would prefer his executive directors not to take up non-executive positions elsewhere. "It is not a sensible thing for them to do."

Mr McGrath conceded that the growing responsibilities associated with taking up non-executive directorships could lead to shortages in the marketplace.

"Other companies will make up their own minds about what works for them; clearly if there were to be a general reduction in the availability of new non-executive directors, this could impact on the overall mix and quality of the non-executive executive pool, but we are not in a position to say if that is happening."

Any move to prevent non-executives taking up positions elsewhere would run counter to attempts to widen the gene pool of UK boardrooms by recruiting senior executives below board level to non-executive directorships.

The factors contributing to Mayflower's downfall have yet to be determined but the fact that it was non-compliant with the Combined Code of Corporate Governance has renewed attention on non-executive directors at Britain's smaller listed companies.

The Code states that a company outside the FTSE 350 should have at least two non-executive directors. However, Mr Chambers was Mayflower's only non-executive - apart from Rupert Hambro, who was also the chairman.

Mr Chambers joined Mayflower's board in May 2002, for which he was paid £27,000 in the year ended December 31 2003.

That is peanuts compared with his earnings at Man, where he earned £1.44m in salary and bonuses in the year to March 31 2004, having headed Man Investments for just seven months.

Separately, Pirc, the corporate governance lobby group, said last week that it opposed Man's remuneration report, arguing the long-term performance targets for management were set too low given the size of potential awards.

It also said that Man's policy of awarding uncapped bonuses contravened its guidelines for best-practice.

Mr Chambers declined to comment.







WOULD BE DIRECTOR OF ANOTHER COMPANY BE A CONFLICT OF INTEREST , WHEN WORKING FOR HEDGE COMPANY AS YOU WOULD KNOW IF THE COMPANY WAS GOING BUST AND WOULD BE ABLE TO SHORT IT

[soysoy] 11/7/2004 12:19

Do you remember the Maxwell's when the police knocked on the door at 5am ,the Maxwell's shouted out of the window go away or we will get the police? We are the police. I liked that bit




How do you turn 800 million pound company then ask for another 80 million then 18 month latter the companies worth nothing answers on post card please to fsa , dti , lse, And Mayflower Directors



They think it`s all over well it`s not
and the shareholders will be taking them to court soon