FRC fines PwC £7.5m over repeated failures in audits of Babcock

LOUIS GOSS

BRITAIN’s accounting watchdog has fined PwC and two of its former partners a combined sum of almost £8m over repeated failures in the firm’s audits of UK defence company Babcock International and its Plymouth dockyard subsidiary.

The UK’s Financial Reporting Council (FRC) hit PwC with a £7.5m fine – discounted to £5.625m for the firm’s compliance – over its repeated failures to properly scrutinise Babcock’s accounts.

The watchdog said PwC repeatedly failed to challenge Babcock’s management in its 2017 and 2018 audits of the firm and failed to obtain sufficient evidence to properly carry out its job.

The FRC said that, in auditing Babcock, PwC failed to get hold of a 30-year contract that accounted for around £77mworth of the defence company’s 2018 revenues. The Big Four auditor also failed to translate a 10-year government contract, written in French, worth €640m, despite the fact no one on PwC’s audit team had sufficient language skills to interpret it properly.

A PwC spokesperson said:

“We’re sorry that the work in question was not of the standard required and that we demand of ourselves.”

The FCA launched a similar crackdown on crypto ATMs in Leeds

Watchdog cracks down on London crypto ATMs

KIRSTIN RIDLEY

BRITAIN’s markets regulator and police have swooped on suspected illegal crypto cashpoints (ATMs) across east London as authorities step up attempts to disrupt unregistered businesses deemed high risk for consumers.

The Financial Conduct Authority (FCA), which last month launched a

YEEZY DOES IT Adidas share price slumps as Kanye West split sees sneaker giant forecast first annual loss in three decades

John Lewis comes under fire for lack of affordable housing in first build-to-rent scheme in Ealing

LAURA MCGUIRE

JOHN LEWIS has faced pushback over its first build-to-rent development after the leader of Ealing council accused the firm of “bullying” and raised concerns about the lack of affordable homes for locals in the area.

Peter Mason, leader of Ealing council, took to Twitter to slam the retail group about the possibility of it not delivering on its promise of making 35 per cent of the homes in its new 19-storey apartment scheme affordable, as the west London suburb becomes oversaturated in private rental builds.

“Ealing needs genuinely affordable housing, above all, and above all other types of housing,” the tweet read.

The grand plans to build 430 new homes above a Waitrose supermarket are already “months behind schedule” according to local residents, The Times reports.

Speaking to The Times, Chris Harris, director of property at John Lewis, played down the dispute, stating that there was similar crackdown in Leeds, yesterday said it was reviewing evidence gathered from “a number of sites” and might take further action. The inspections were conducted under money-laundering regulations, which allow officers to enter premises without a warrant, observe activities, seek explanations about documents or information and take copies.

“always a bit of argy-bargy” in high profile developments.

A John Lewis Partnership spokesperson told City A.M. that the group has given a “great deal” of thought to the design and the latest consultation, which will take place later this year, is another important step in “continuing our conversation with the council and local people in helping to shape our plans”. The homes are due to be ready by 2028.

Crypto ATMs (CATMs) allow people to buy or convert money into cryptoassets. But no CATM operators are registered with the FCA, which means any operating here breach British anti-money laundering regulations. CoinATMRadar put the number of these cashpoints in Britain at more than 270 in 2020. It is now showing only 19 locations, 12 of which are in London.

City of London update

Migr ation Museum t o boos t

City’s cultur al of fer

PLANS for a major new development in the Square Mile that will boost its cultural offer and support it as a seven-day-a-week visitor destination have been approved.

The scheme at 65 Crutched Friars will create a new permanent home for the Migration Museum, currently based in Lewisham, over three floors including exhibition and event space, a cafe and shop.

The Museum explores how the movement of people to and from Britain across the ages has made us who we are – as individuals and as a nation. It will include an educational outreach programme to engage with diverse communities across London and the UK.

The development will include a mix of studio apartments and shared accommodation for students with 35% of the 769 rooms classed as affordable housing.

Have your say on volunteering

RESIDENTS and organisations in the City are being asked to give their views on what volunteering means to them.

The City of London Corporation is carrying out a survey aimed at understanding the volunteering needs of residents and how Square Mile organisations can best involve them.

It has commissioned volunteering charity Tempo Time Credits to carry out the research, which can be completed online or by attending drop-in sessions. The results of the survey will shape how the Square Mile’s governing body supports residents to volunteer and community groups to engage volunteers.

Access the survey at bit.ly/3ZDMu7o