GLOBAL accountant Pricewaterhouse Coopers has confirmed its resignation as independent auditor for rugby club Wasps after evidence was falsified to massage the accounts, as we exclusively revealed.
The damning resignation letter now published on the Companies House website adds that PwC had walked away from all its arrangements with the Wasps group of companies due to the “seriousness of these events”.
The letter states: “The reason we are ceasing to hold office is that, as set out in our audit report in the financial statements of Wasps Finance plc for the year ended 30 June 2017, during the course of our audit of the financial statements of its sister company, Wasps Holdings Limited, we were provided with evidence which our testing revealed to have been falsified.
“Given the seriousness of these events, following completion of our audit we do not consider it appropriate that we continue as auditors.
“In accordance with section 519(3a) of the Act, we consider that the above matter connected with our ceasing to hold office as auditors of the company needs to be brought to the attention of the company’s members or creditors through its inclusion within our audit opinion.”
The Coventry Observer’s recent investigations have also asked a series of questions to the authorities, after we revealed the PwC’s audit report had concluded falsified documents were presented with an “override of management controls” to boost Wasps Holdings Limited’s revenue, falsely using a £1.1million contribution from ultimate shareholder Derek Richardson.
Only after the matter was discovered by PwC were public bondholders – who hold £35million of Wasps’ debts – notified that Wasps’ true revenues had fallen below the minimum level pledged to them in covenants in the bond scheme.
The covenant pledges had promised bondholders that Wasps’ financial health – and ability to pay back the bonds plus interest – would not fall below certain levels.
See links below to read our investigations so far.