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Corporate Business

MG Rover Collapse Fine Cut From £14m to £3m

The accountancy firm Deloitte has had a £14m fine relating to its dealings with collapsed car maker MG Rover cut to £3m after an appeal. The reduced penalty was announced on Monday after an appeals tribunal earlier this year threw out eight of 13 charges against the firm in a case brought by the Financial Reporting Council (FRC). It also cut the fine imposed on former Deloitte partner Maghsoud Einollahi from £250,000 to £175,000 and reversed his three-year ban from the profession. Instead, he and Deloitte were given a “severe reprimand”. MG Rover entered administration in 2005 with debts of £1.4bn and more than 6,000 job losses. It had been bought by directors known as the Phoenix Four for a token £10 five years earlier. The FRC filed a formal complaint against the firm and Einollahi in 2012 and the […]