Accounting Firms

BDO may be forced to bail out Spanish arm amid €126.8m penalty

Accountancy firm BDO could reportedly be forced to pay a significant fine after its Spanish arm was ordered to pay part of a €126.8m (£115m) penalty for its role in the Pescanova accounting scandal. 

According to The Guardian, BDO, Pescanova and six former directors have been ordered to repay investors of the fishing firm for their alleged involvement in falsifying accounts between 2010 and 2012.

The order has come from Spain’s highest criminal court – The Audiencia Nacional. The paper also revealed that BDO will appeal the decision.

It is thought that while BDO’s Spanish firm is a separate entity to its businesses in other countries, a large fine could lead to all entities helping to pay the penalty. 

It is yet unclear how much of the compensation BDO could be forced to pay if its appeal fails. 

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As reported by the paper, BDO told Spanish news outlet Europa Press that it itself was a victim of the fraudulent accounts and had been “‘deceived” by Pescanova management. 

It added: “The sentence is not yet set and we would like to confirm that we have already begun proceedings to appeal it as soon as possible.”

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