PwC is on the verge of receiving a massive blow as it has exhibited an irresponsible attitude towards the administrators for Providence Investment Fund along with breach of duty and contract. A fund was created which promised a return of 14% but collapsed in 2016, failing to live up to the expectation of the investors. Hence, the administrators have decided to sue the company of £14 million and get back a portion of the lost £37 million. However, the company has also declared to defend its action at the Guernsey court. It has further stated that it is deeply disappointed that such an action was brought about by the investors.
According to the lawyers, the PwC has depicted pure negligence is administering the entire plan of the scheme which demanded acute supervision and appropriate implementation of the plans. They have further mentioned that the company had breached the duties that accumulated an additional fund of £14,012,730 from the investors. As per Mathew Newman, the lawyer on behalf of the administrators of the Providence, if they succeed in recovering £14 million, it will be a sigh of relief for the investors who have lost a huge sum of money.
On the other hand, an audit was conducted by the PwC on the financial statements of the PIF or Providence Investment Funds PCC Ltd. from October 2012 to December 2013 and also on the statements of December 2014. The auditors have given the company a clean report. However, the court papers claim, though the audit was conducted by the PwC, it was utilized by the Chief Executive of the company along with the others as a fake Ponzi scheme.
In one of the stages, 97% of the money of the investors didn’t reach Brazil as a major portion of the fund went to Providence Global Limited, which is a Guernsey company.
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