TUI has denied reports that it has been asked by the City’s governing body to explain how it lost an “illusory” £117 million.
According to a report in The Sunday Telegraph yesterday, a formal inquiry has been launched by the Financial Reporting Council (FRC), the organisation that monitors corporate governance in the City.
The article said the FRC is also likely to examine the circumstances surrounding the resignation of KPMG as Tui’s auditors. It was KPMG which reported the missing £117m.
When it resigned in December, KPMG said it was no longer able to work with Tui due to a “strained relationship” with some of its directors. It also questioned the company’s “disclosure and accounting treatment in the financial statements”.
But a spokeswoman for TUI said this morning: “It is not true that we have been contacted by the FRC.’â€
By Bev Fearis
