Often Partisan

Auditors Withdraw Their Report and Deny Allegations

In an increasingly bizarre twist, Birmingham International Holdings have ben forced to announce to the stock exchange that their former auditors, JH CPA Alliance have written to the company to withdraw it’s auditor’s report from the last available set of accounts.

The announcement which can be read in full here contains the whole letter received from JH CPA Alliance, which confirms that:

  • BIH never returned documents confirming directors’ pay
  • they considered the announcement made on Monday to contain reckless comments
  • that due to the above reasons, JH CPA Alliance have been forced to withdraw their auditors report from the June 2014 accounts.

As you can imagine, BIH are considering the legal implications of such a letter, along with the validity and where it leaves them. From speaking to sources in Hong Kong I can’t say for sure if the Auditors can actually take the course of action that they are taking – it strikes me that they are trying to defend themselves after being implicated in this alleged misappropriation HK$30M – either by being complicit or by being incompetent.

I have to admit two things: firstly I’m intrigued as to which director would be reticent to confirm their full pay to a set of auditors; and secondly what effect this will have on the football club bearing in mind we have had a transfer embargo in the past (March to July 2012) for not having audited up to date accounts on file.

It’s another shot fired in the civil war going on in HK, and I suspect this one is being fired back at the Panos faction by Pannu – who specifically picked these auditors – as a desperate defence against allegations of money going missing. Although it’s a bit embarrassing with it all being played out in public at least we have a better idea of what is going on – and at least BIH are actually trying to do things by the book.

Where this goes next is anyone’s guess.

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44 Responses to “Auditors Withdraw Their Report and Deny Allegations”

  • asif says:

    it only goes on and on

  • Richard Granfield says:

    I sense a second book in the offing!

  • John says:

    If someone shouted “stop thief ” in Hong Kong, I wonder how many on the BIH board, would start running !

  • Oldbluenose says:

    When will we ever be rid of these people,?. We are only a commodity to these people, but to us we only care for the welbeing of our beloved club, kro.

  • Tony E says:

    They say fact is stranger than fiction and that statement was never truer than when BIHL are involved.

  • bluearmyfaction says:

    I’m not sure that the auditors have necessarily played a blinder here. What we have here are:

    1. auditors signing off on a report;
    2. a later allegation that £2.5m has been stolen – mere allegations, of course, not proven;
    3. auditors trying to unsign the report because of the allegation that £2.5m has been stolen.

    It doesn’t say much for the auditors’ confidence in their auditing skills. Did they notice £2.5m or not? If not, then surely they would be confident that the £2.5m is not, actually, missing, and the allegations will be unproven?

    It would be interesting if the current board brought BDO back on board as auditors to do a deep clean.

  • Blue Lizard says:

    Dropping it like a red hot piece of s**t….Shouldn’t they also refund the money they were paid to carry out the audit in that case??? lets face it you cant just lose £2.5 million down the back of the sofa!!!

  • A Hawkins says:

    Everybody connected with this company are a joke and should never be allowed to own another company again. The whole situation is beyond a joke and its time to sell up.

  • Stevie W says:

    This sort of answers why BIHL were always juggling auditing teams, it might also explain that auditors wont endorse the reports.

    What a soap. Dan scrub round the book you need to make a movie.

    Thanks for all your time and effort very much appreciated irrespective of what you may get out of it.

  • DoctorD says:

    I really have no clue what is going on any more. I used to post on here rational thoughts in response to fairly rational events. Now it’s anyone’s guess what’s going to happen next. You can be sure of one thing: someone is going to make money, and someone is going to lose out.

  • Bluepenguin1976 says:

    Good God! Its all got extremely murky and muddy. They are clearly not fit to run the club (as we well know).It’s just an endless stream of incompetence and lies!.

    • Teej says:

      Murky and muddy indeed Blue penguin , no clarity or transparency with this lot, It’s like the old joke: What do you get if you cross The Godfather with a lawyer? Answer: An offer you won’t understand! never a truer word spoken in jest

  • noddy says:

    Quote from Accountancy Age.
    ts auditor for the period was JH CPA Alliance, which resigned from the role last November, with “no disagreement or unresolved matter” between the two parties in relation to its departure, the group said at the time.

    The missing funds could have a material impact on the operations and financial situation of the group. The group’s board said it was “concerned” that the suspected misappropriation was not raised by its auditor for the year ending 30 June 2014.

  • Alan Watton says:

    I told you Gun boats up the Yangse. Seriously I still don’t understand why The Hong Kong Govermment have not seized the Company and sold it to the highest bidder

    • almajir says:

      Because I’m more likely to receive a phone call from Charli XCX asking me to dinner?

      Seroiusly, never ever ever ever ever ever ever gonna happen – Governments don’t get involved like that. PWC missed £250million in Tesco’s profits, do you see Tesco being nationalised?

  • Lee says:

    Quite interesting how this war is going, for too long now a lot has gone on which has come out further down the line when accounts have been published, very interesting to see what else surfaces, the bihl board seem very intent on running the business in completely the opposite way than it has been, correctly, one or two people have got in the habit of thinking they can do as they like, the excuse for not wanting to disclose earnings should be an interesting one, by the person who doesn’t want to say…….

  • choc says:

    Well I seem to remember many moon’s ago that sullivan and Gold stated they would never sell to Carson Yeung. Funny that!!!!!

  • Blooflame says:

    Dan, You know well how it is out there..it’s a different world and “sticky fingers” whilst not unusual, will always be punished if you’re found out. From some time back I said what was what about this crowd and fell foul of you for it Dan. In retrospect I understand why and that legally you had to protect yourself. That said, it is imperative now that either this lot are disbarred or they sell at the earliest opportunity. I wonder if some arrangement will be found to Free BCFC from BIHL? Funny how things are moving fast now. I’ve no doubt this will be done and dusted before seasons end.

  • Eveshamblue says:

    Main thing is on the pitch Blues are thriving. Forget the politics. We are fans and have no control as to the running of the club do we?

  • rhees says:

    Omg wtf next you could write stuff in fiction

  • atko says:

    These guys are so stupid they don’t even realize they are shooting themselves in the foot trying to score points between board members. As long as they are pulling stunts like this there is no way that the HKSE will allow them to resume trading. That means they must be losing money by the bucket load by the day. By the time this is all over someone could pick up the club for a tenner!!

  • Richard Granfield says:

    I see David Edgar has joined Huddersfield on loan for the rest of the season with no recall.
    It looks like GR is steadily letting the Clark’s signings he doesn’t want (Hall, Lee and Edgar) leave.
    This of course leaves us short of central defenders, so expect a signing soon.

    • RichardM says:

      Not sure, we still have Packwood as an option…might be good news for the lad as raises him in the pecking order. Surprised, I thought Edgar was OK to be honest.

  • Hillfield Blues says:

    Can’t help but feel a bit surprised Edgar has left us.No John Terry but seen him have some pretty solid games in defence and thought he was quite good to maybe bolster us off the bench. If there is another central defensive player lined up he must be good enough to maybe dislodge the Morrison/Robbo partnership otherwise whats the point?

  • steven says:

    Dan surely these lot are running the risk of everything blowing up in their faces? is it stupidity? or just simply that saving face is so important they really don’t care what happens to BIHL and by extension BCFC?

    The mind truly boggles at how incompetent these fools seem from the outside. Will be interesting to see which director failed to fully disclose their pay if that is indeed the case and if it is the man we all would expect it to be or not!

    • raymondo says:

      What concerns me if Edgar goes and a transfer embargo comes in from the FL because of this latest
      fiasco we’ll be stuck being unable to get any more players as replacements to build the team.

      • chris says:

        an embargo doesn’t necessarily mean you can’t bring players in, we did in our last embargo and so have Forest this month.

      • atko says:

        Obviously we all hope that will never happen but there is nothing to stop us from recalling him as they would be extreme circumstances. Hall returned to Spurs when he was on loan for the season to us & that was simply because he wasn’t getting first team action. Recalling Edgar would be far as a last resort which I am sure Huddersfield would not object to under the circumstances. Let’s hope nothing like that happens though.

    • almajir says:

      BIH are actually trying to do things right, fix things and keep the relevant people informed. What is happening is the shite from before is now being exposed for all to see – but this is good, because now things can be fixed

      • Texas Pete says:

        I am happy you said they are trying to put things right, Dan. We should be focussing on supporting the good guys to highlight and promote that things are improving. Hopefully it is not out of the frying pan into the fire. Do you know thecpeople trying to correct the issues at BIH?

  • chris says:

    Why has it taken the board since June to find this money is missing?
    Why did the accountants not find this and why did they not mention the lack of info on directors pay before now?
    Why didn’t the Football League find this error in the accounts last November?
    Which means the Football League could be failing to find similar errors or the hiding of transactions in other clubs account’s, proving their FFP a failure, if it is this easy to fool them.

  • Hillfield Blues says:

    Agree. They are meant to be intelligent businessmen in this to make money. Instead they are embroiled in this internal battle and some of them need to be very careful.The shots across the bows are becoming fast and furious and the hope is that sooner or later somebody is going to fall down a regulatory trap door.

  • mark says:

    you appear to be right on one thing this civil war is only going to get worse my money still on carson…..

  • Knowle Blues says:

    I can’t believe what a bad light this whole sorry affair casts over Chinese & HK business operations. The appalling way these people have dragged our club through the mud is discussing. The next world super power – really!! Incompetence, lack of transparency, leadership and integrity and a failure to create credible accounts (on numerous occasions)…… What message is this affair sending other UK investors/partners? It’s embarrassing for Chinese/HK but has it gone past the point of repair?

  • Blueboi14 says:

    It’s well known there are 3 types of accountants who can be categorised when asked what 2 and 2 equals: –

    Accountant Type One responds – “2 and 2 equals exactly 4”.

    Accountant Type Two responds – “2 and 2 equals on average 4, give or take 10%”.

    Accountant Type Three responds – After getting up, locking the door, closing the blinds, “what would you like it to equal”.

    Which of the above 3 do you think BIHL employed?

  • Hullblue says:

    On the bottom of page 3 of the BIHL notice the directors are listed, one Carson (no Mr) appears…………………….!!!

    Perhaps we dont care ?

  • pieman1979 says:

    At least Panos is getting things sorted around the club as best as he can and as long as fans stay loyal to help keep the club going I think we’ll be ok. I’m relieved money is no longer being squandered off to HK anymore, lets just pray it stays that way. I for one will not give up on my beloved blues just because of the clowns we’ve had running things in the past couple of years and any problems beyond our control will not bother me too much either anymore. Remember, there will be joys and sorrows too!!! KeepRightOn


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