PwC's TransTec audit faces full probe

ACCOUNTANTCY firm PricewaterhouseCoopers is to face a full-blown investigation over its auditing of TransTec, the bust Midlands metal-basher founded and formerly chaired by Tony Blair's ex-Paymaster General, Geoffrey Robinson.

The collapse of TransTec flew to prominence because of its connection with the wealthy Robinson, once one of New Labour's brightest stars.

But last year's Department of Trade and Industry report into the company, which exonerated Robinson from any knowledge of the accounting irregularities that brought the company down, was scathing of the conduct of its auditors Coopers & Lybrand and the firm into which it subsequently merged, PwC.

Today, the Joint Disciplinary Scheme of the accountancy profession has charged the firm and its Birmingham-based partner, Jonathan Lander, over its 'audit failure' at TransTec and its conduct and relationship with TransTec's directors and audit committee.

The DTI report accused PwC of 'a regrettable lack of principle...not failures of technical competence but rather a failure of will - a lack of robustness and strength of purpose'.

The report concluded: 'On auditing, the message from this inquiry...is that auditing by conversation with executives...is not auditing.'

PWC says it 'profoundly disagrees' with the claims made by the JDS. 'We stand by our people and will vigorously defend our work,' it said.