PwC Severely Reprimanded and Fined £2.9m for 'Serious Failings' Over Its Audit of Collapsed Bank

PwC was fined £2.9m and severely reprimanded yesterday over "serious failings" in its audit of Sanjeev Gupta's failed Wyelands Bank.

- Julia Kollewe

The Financial Reporting Council also severely reprimanded the accountancy firm and said there must be no repeat of the errors.

However, because of "exceptional cooperation" by PwC, the FRC cut the fine from £4.5m to £2.9m.

The firm audited the accounts of Wyelands between 2015 and 2019.

Jonathan Hinchliffe, who signed off the final year's figures on behalf of PwC, was also fined and severely reprimanded. His penalty was cut from £55,000 to £33,412.

PwC was ordered to cover the bill for the FRC's legal advice.

In 2016 Wyelands became part of the Gupta Family Group Alliance, a sprawling business empire ranging from finance and metals to renewable energy that was the largest client of Greensill Capital, the financing company that went bust in 2021.

Gupta was described as "the saviour of steel" when he began rescuing failing UK foundries in 2017.

But in May 2021 the Serious Fraud Office announced an investigation into suspected fraud, fraudulent trading and money laundering at companies within the GFG Alliance, including its financing arrangements with Greensill.

Greensill, which once employed the former prime minister David Cameron as an adviser, was a major backer of GFG companies, which include Liberty Steel.