Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

$1.8bn claim against accountants rejected

Jill Treanor Banking Correspondent
Friday 31 January 1997 00:02 GMT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A High Court judge yesterday rejected a $1.8bn (pounds 1.1bn) claim against Ernst & Whinney, the accountancy firm now known as Ernst & Young, brought by the liquidators of Bank of Credit and Commerce International.

BCCI collapsed in 1991 after regulators uncovered evidence of fraud and money-laundering. Its total debts ran to more than $12bn and it was only last month that creditors to BCCI started to receive some of the money they were owed.

After yesterday's judgment, Ernst & Whinney still faces a claim for $1.7bn in respect of its 1985 and 1986 audits of BCCI Holdings SA and BCCI SA.The liquidators' original claim was for $10bn but in June 1995 the claim was reduced to $3.5bn.

"The BCCI liquidators have now had struck out, or been forced to withdraw, 85 per cent of the claims originally brought against Ernst & Whinney," said Nick Land, senior partner at Ernst & Young. "We look forward to dealing with the remaining 15 per cent in a similar fashion."

Deloitte & Touche, the liquidators to BCCI, said they were considering whether they should appeal.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in