27 Apr 2018
PrivatBank in Ukraine has filed a lawsuit against PricewaterhouseCoopers (PwC) in Cyprus and Ukraine, seeking $3 billion in compensation for damages it says it suffered as a result of the auditor’s ‘extensive breaches of duties,’ including failure to identify fraud.
The legal action pertains to PwC’s auditing of PrivatBank’s financial statements for the accounting periods ending December 2013 to December 2015.
Petr Krumphanzl, chairman of the Management Board of PrivatBank, said: “That firm failed absolutely to identify the ongoing operation of the huge fraud within the bank over many years which resulted in virtually the entire corporate loan book of the bank being non-performing [and without any adequate security].”
PwC’s Ukrainian subsidiary said: “We do not believe there is any basis for this action and we will if necessary defend our position vigorously.”
“PwC Ukraine performed its audit of PrivatBank’s 2013-2015 financial statements in accordance with international auditing standards,” it added.
PwC Cyrus said: “PwC Cyprus performed its audit work in accordance with the applicable law and regulations and the international auditing standards. At PwC, we take our professional obligations extremely seriously. We do not believe there is any basis for this action and we will defend our position vigorously.”
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