By Carl Jackson Thursday 12 September 2013 Updated: 12/09 14:02
GLOBAL consultancy giants Deloitte and Touche have been fined £14million for the advice given to MG Rover in the run up to its collapse in 2005.
The Financial Reporting Council (FRC) released their final report on Monday (September 9) following an independent tribunal hearing in July where 13 allegations against the firm were proven.
As well as the hefty fine which is ten times the amount of the FRC's previous highest sanction, Deloitte has been handed a 'severe reprimand'. Former partner Maghsoud Einollahi has also received a personal fine of £250,000 and been excluded from the profession for three years.
Northfield MP Richard Burden has called for some of the proceeds from the £14million to paid to more than 6,000 former workers who lost their jobs in 2005 and were promised substantial compensation which never came.
"MG Rover workers lost everything and the wider Longbridge community was hit hard.
"The money wouldn't change lives but it would help people draw a line under the saga and move into the future.
"The £14million must mean change for the people and the community who suffered so much and are still yet to be repaid."
An FRC spokesman said the findings of the report sent out a strong and clear message to all members of the accountancy profession about their responsibility to act in the public interest and comply with the council's code of ethics.
Paul George, executive director for conduct for the council, added the sanctions were proportionate and were a necessary deterrent to prevent misconduct.
In a statement a Deloitte spokesperson said the firm was disappointed with the outcome and disagreed with its main conclusions.
"We take our public interest obligations seriously in everything we do and we are disappointed the efforts we and others made did not successfully secure the long term future of the MG Rover Group."
The firm added the ruling would have negative implications for other accountancy firms throughout England and Wales.
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