Go-Ahead lost its Southeastern contract last year
(Picture: PA Wire)Deloitte is under investigation by the financial regulator over its auditing of troubled bus and train operator Go-Ahead’s accounts.
The Financial Reporting Council (FRC) will look at Deloitte’s involvement in Go-Ahead’s financial reporting over six years, between 2016 and 2021.
The government stripped Go-Ahead of the Southeastern rail franchise, one of Britain’s biggest rail networks, last year after finding it had failed to declare more than £50m of taxpayer funding that should have been returned.
It was later fined £23.5 million by the Department for Transport, and the case has also been referred to the Serious Fraud Office. Both the group’s chief financial officer, Elodie Brian, and chief executive, David Brown, stepped down after the scandal broke.
A spokesperson for Deloitte UK said: “We will cooperate fully with the FRC’s investigation. Deloitte is committed to the highest standards of audit quality.”
Deloitte was appointed as Go-Ahead’s auditor in 2015.
Go-Ahead said this month it plans to turn around underperforming businesses and grow in its existing markets, which include Norway, Germany, Singapore and Ireland.
Govia, a joint venture between Go-Ahead and French rail giant Keolis, was awarded a three year contract to run the Thameslink rail service last month despite problems with the Southeastern franchise.
