Often Partisan

BIH Change Auditors – Again

Birmingham International Holdings have announced to the HKSE that the current auditors KTC Partners have declined acceptance of the role as Auditors to BIHL for the financial year ending June 2015.

The announcement confirms that once KTC Partners took into account the professional risks of the audit, they have not accepted their appointment as confirmed at the AGM in January. The Receivers have moved to appoint Zhongshan ANDA CPA to fill in the role.

This is a strange one to me, bearing in mind KTC Partners only recently replaced JH CPA (who were implicated in the money that had been allegedly misappropriated) at the end of last year. To this layman it seems as if there are too many skeletons coming out of the closet, too much muck hitting the fan to be seen to be working on these accounts – and it makes me wonder just what has been found.

The other alternative is that pressure has been applied externally on KTC Partners not to get involved – something I really don’t want to think about, let alone speculate over.

Edit 16:30 BST 13/4

One thing that I have been reminded about is that KTC Partners were also involved in an internal control review (an announcement confirming their findings was published here in October 2013). It could be that they have a conflict of interest because of that – again, I don’t want to speculate too much but if “revealing” information has been found on the company that goes back to that date, then they would want to be well away from auditing the books.

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46 Responses to “BIH Change Auditors – Again”

  • graham says:

    Regarding the latter, what do you mean?

  • zxcv says:

    could it be that E&Y simply want these chosen Accountants for whatever reason to deal with whatever has been turned up.

  • La La La says:

    Mmm ..Sounds like the accounts are a “Hot potato” ??

  • Baldric says:

    I smell something fishy, and I’m not talking about the contents of Baldric’s apple crumble!

  • Tony E says:

    If skeletons have been identified wouldn’t E and Y have called in the Hong Kong equivalent of the serious fraud office or at least made an announcement to the HKSE?

    • PeteB says:

      Perhaps they have been in touch with the equivalent of the serious fraud office but as there is an ongoing case/investigation, they have been told not to make an announcement.

  • Peter Bates says:

    Too much cloak and dagger for me got an headache just thinking about it xxx

  • B34blues says:

    It looks to me like e/y have got a ton of evidence and non of these auditors want to touch the books ‘ hope I’m right that e/y have and Carson and his cronies are up shit creek

    • Stevie W says:

      B34 my view aswell and I did hear a rumour a little while ago that the evidence was coming along nicely. how true that was I don’t know but this move seems to indicate something is a foot.

  • PeteB says:

    I think they’ve just realised that putting their name to the accounts of BIHL and saying that they are “okay” is a huge gamble. Why get involved with the circus that is BIHL if you don’t have to?

  • DoctorD says:

    Dan — but KTC appointed under the “ancien regime”, not by E&Y so is that a good thing that those from the old empire are being rooted out.

  • Stevie W says:

    Dan the name is not Zhongshan but Zhonghui and going by web sites seem a more savvy unit than KTC.

    I quite agree there must be some real muck in the accounts, bring it out I say and lets see who starts running for the hills.

  • ian ambrose says:

    Again confuse!!… What mean on june 2015 at BCFC then next what…???? Sound like trouble again with BIH vs HKSE ??… What happing hearing BID 7 interesting takeover at BCFC??? Who hearing then???….HMMMMMM HMMM again As above

  • Mitchell says:

    truth is that we are an extremely hot potato for any auditors. Bearing this is mind, do we honestly think any buyer would welcome coming aboard. Fraught with uncertainty and not ruling out danger. Pessimistic I know, but that is how it looks at present.

  • MWJblue says:

    I personaly hope that the decks are being scrubbed clean so potential buyers can see that they are buying a “clean” product, The less cleaning a potential new owner has to deal with surely makes Blues a good investment. If in the process certain geese get cooked so be it!!…….KRO

  • ChrisG says:

    It sounds like BIH is another name for the plague in HK as nobody wants to go anywhere near them.

  • AndyP says:

    Has anyone picked up on season ticket prices being published today ,3 weeks before seasons end. Are they really running out of dosh.I know this is usual practice for most clubs but last season we had to wait till mid June before prices were announced, and then at the same time we were sold on the story that Jeremy Wray was about to purchase club

    • almajir says:

      It’s not cos we were running out of dosh. Nor is it to do with bidders. They’ve been ready to go for a while, just waiting on sign off.

      • Tony says:

        Dan in all honesty do you know something regarding the clubs finances you are not at liberty to disclose?.
        You do seem rather close to the clubs sta,f and defend them at every opportunity.

      • Bluenosesol says:

        On Tom Ross Saturday, GR was urging the supporters to buy their season tickets EARLY????

  • Hillfield Blues says:

    Strange one. Either the accounts are too much of a minefield to put their name to or they’ve been warned off. Why else would they take this action?

  • andy says:

    I don’t think there is anything to read into regarding the season ticket price announcement, the prices are frozen so today is as good as any other to publish them.

  • Mitchell says:

    Hillfield Blues last few words could be key.

  • Agent McLeish says:

    If this happened in Jan then why the announcement only now? Should this have been announced to HKSE in Jan?

    • zxcv says:

      but the announcement now is because they have appointed a replacement for KTC and E&Y were not involved at that point.

      • zxcv says:

        here you go.

        Messrs. Liu Yiu Keung Stephen, Yen Ching Wai David and Koo Chi Sum, all of Ernst & Young
        Transactions Limited of 62nd Floor, One Island East, 18 Westlands Road, Island East, Hong Kong,
        were appointed as the joint and several receivers (the “Receivers”) of the Company pursuant to the
        Court Order granted by the High Court of Hong Kong on 16 February 2015. The Receivers announced
        that Zhonghui ANDA CPA Limited will be appointed as the new auditors of the Company and its
        subsidiaries to fill the vacancy following the non-acceptance of engagement by KTC and they will hold
        office until the next annual general meeting of the Company.

  • zxcv says:

    Daniel, slightly off topic, do you know if a date has been set yet for CY trial appeal result, I thought it would have been just a couple of weeks for the judge to write up the findings of the court.. it must be 5/6 weeks now isn`t it?

    • almajir says:

      zxcv – it’s been a month. If I knew a date do you think I might have mentioned it? ;)

  • Jazzzy786 says:

    Could it be the auditors are being scared off by dangerous people on the books. Exposing Fu Manchu may not be a safe thing to do.

    • zxcv says:

      who knows, it could of course just be the fact that the accounts are in such a bad state and a lack of documentation to enable anyone to put their name to them, but it has to be of some concern to us all that no one seems to want to know, well that’s how it seems to be. Guess we might never know unless it ends up in legal proceedings.

  • AussieBlue says:

    Dan, hear what you say and also hear what you don’t say.
    Even auditors have families.

  • Bluenosesol says:

    Ernst and Young are one of the world’s big 4 auditors, why cant they do it??

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