A test into Saffery Champness is initiated by the Financial Reporting Council. It also revealed a PwC survey which audited Wyelands Bank’s financial statements. Mr. Gupta controlled the bank, but also lent money to his other companies.
Saffery Champness’s audit of the financial statements of Greensill Capital for the period up to 31 December 2019 was considered. The supply chain finance company bust in March, which raised questions about the viability of the UK-based Liberty Steel Alliance, the widespread Mr. Gupta-controlled empire.
After the fall of Greensill, it turned out that former Premier David Cameron had failed in exercising lobbies on behalf of the company to prominent members of the state and former colleagues. Lex Greensill, the creator of Greensill, was a government consultant under Prime Minister Cameron’s term.
The Graceful Fraud Office in May announced the investigation “in connection with the financing of Gupta Family Group Alliance’s firms, notably its Greensill Capital funding arrangements,” investigating ‘suspected fraud, fraudulent trade, and money laundering.”
One of Saffery Champness’s spokespeople said, “As professional accountants, we owe our duty to the existing and previous customers and it wouldn’t be proper to speak at this time to say that Saffery Champness will, of course, cooperate fully with the FRC.”
The FRC also considered PwC ‘with regard to its audit of Wyelands Bank’s consolidated financial accounts for the period ended April 30, 2019.’
The collapse of Greensill’s capital and its business operations, GFG Alliance, the collection of firms led by the metal tycoon Sanjeev Gupta, is still under investigation. There is no shortage of official inquiries. Parliamentary selected committees make a post mortem of the former and try and develop the latter as part of a larger investigation into the stainless-steel industry’s future. Within the framework ofGFG, the Serious Fraud Office examines alleged fraud, fraudulent trade and money laundering, including its links with Greensill.
But today’s statements suggest a new front and a new question is being asked. How could Greensill come so far and only so quickly show up in great financial health? Was it not to believe his accounts? The FRC has also started an investigation into the audits of the GFG network’s Wyelands Bank by PwC. For a while, Wyelands was in the shade. This will be sold or terminated once Mr. Gupta has declared that he will not give more money.
If FRC workers are seeking a basis for their inquiry, they may want to reflect on the evidence hearing on Tuesday on the selected Committee on Business, Energy and Industrial Strategy. Stephen Rose, Chief Executive Officer of Wyelands, is the first witness before MPs.
Formerly known as the Tung Bank, Mr. Gupta bought Wyelands for £30 million in 2016.
In 2019, the Bank’s Prudential Regulation Authority Banking Oversight Office, Governor Andrew Bailey, stated that an inquiry into the enterprise had been begun on concerns about “loans related to the ultimate beneficial owner, Mr. Gupta.”
He stated that in early 2020, the Bank alerted the National Crime Agency (NCA) and expressed its concern to the Serious Fraud Office (SFO).
