Deloitte indicted over false reports on Daewoo Shipbuilding

Deloitte executive arrested in Korea over Daewoo Shipbuilding fraud

Prosecutors on Tuesday said they have indicted a local accounting firm, Deloitte Anjin, and its employees on charges of writing false reports for cash-strapped Daewoo Shipbuilding & Marine Engineering Co.

The prosecution said three employees at Deloitte Anjin LLC are suspected of providing favorable reports for the ailing shipyard in 2013 and 2014 while being aware that it was cooking the books.

Another former employee at the firm was indicted last month over similar allegations.

Prosecutors said the firm should also be held liable for failing to properly manage its employees.

Later in the day, Deloitte Anjin issued a statement, saying the indictment is groundless.

Daewoo Shipbuilding is one of the country’s big three shipyards that has been implementing drastic self-rescue programs, including asset sales and workforce reduction, in order to cope with the protracted, industry-wide slump.

Earlier this year, the shipyard said it had much larger losses in 2013 and 2014 than earlier reported, citing accounting mishaps.

 



Copyright Ships & Ports Ltd. Permission to use quotations from this article is granted subject to appropriate credit given to www.shipsandports.com.ng as the source.