amsterdam - Accountant PwC is banned for two years on the Indian financial market. The office missed a $ 1.7 billion fraud case. PwC is not allowed to carry out book checks of listed companies during those years.
The local supervisor Sebi has determined that punishment. The ruling applies to all parts of Price Waterhouse in India, according to the ruling.
PwC is immediately excluded from the fastest growing market in Asia. PwC has 43 of the largest 500 listed companies including Tata Steel as a customer.
The judgment follows the final judgment in a nine-year legal procedure. In addition, PwC was accused of having missed fraud at the company Satyam Computer Services. The group reduced its taxable turnover from 2003 to 2008 with false invoices, 7561 in total.
In 2009, the Satyam chief executive Ramalinga Raju acknowledged the fraud. PwC had to independently verify the monthly payments, but left it fairly systematically, according to Sebi.
That is why the accountant called it complicit in fraud. It could have easily discovered that deception on a large scale. In those years, however, the group ignored all standards for good accountancy work, according to the watchdog in his speech.
PwC reported 'disappointed' after this judgment. The affair at Satyam played more than ten years earlier, and PwC had no knowledge of it, according to the company in a reaction. The accountant claims he has not consciously missed the billions fraud. PwC contests Sebi's statement.
PwC is one of the four largest accounting firms in a sector that is hit by scandals. On New Year's Day, a US judge reported that PwC had been negligent in the $ 2 billion fraud that led to the collapse of Alabama's Colonial Bank.
Competitor KPMG is under scrutiny in South Africa because of the very close ties of drivers with the controversial Indian family Gupta. He was allowed to deduct the costs of a large wedding party under KPMG supervision.