Yahoo Finance City watchdog launches probe into old regime at contractor Mitie
Outsourcer Mitie’s former management team faces more scrutiny after the City watchdog opened a misconduct probe into controversial accounting practices under old boss Ruby McGregor-Smith.
The Financial Reporting Council will widen the scope of its investigation into the cleaning-to-security contractor, which issued profit warnings and restated earnings last year, to include those responsible for the “preparation and approval” of 2016 accounts.
The FRC is already probing auditor Deloitte.
McGregor-Smith (pictured) and finance boss Suzanne Baxter left in December 2016 and February 2017.
Both had their bonuses and long-term share awards scrapped due to “negative” performance.
The FRC did not say who it was investigating.
Current management, led by Phil Bentley, has turned over dozens of documents to aid the FRC investigation, which could lead to fines or a ban.
The FRC today gave Bentley’s new management team a clean bill of health over its handling of the controversy.Bentley improved revenues and half-year profit is up 5.8% to £32.6 million.
