Watchdog slams ‘reckless’ AssetCo ex-bosses over accounting

The UK’s accountancy regulator has rebuked former top brass of AssetCo, the firm that used to lease London’s fire engines, over an accounting scandal.

The Financial Reporting Council has made a formal complaint over the conduct of former chief executive John Shannon, ex-chief financial officer Raymond Flynn and former financial controller Matthew Boyle, over its accounts for 2009 and 2010.

The FRC alleges the trio “acted dishonestly or recklessly” and “breached the fundamental principles of integrity and objectivity”.

AssetCo, which listed a decade ago, nearly collapsed in 2011 after a series of restatements to its annual accounts. A big tax bill also put the company under pressure and it had to be bailed out by shareholders.

The case will go to tribunal. If the three are found guilty they face a range of sanctions, such as fines or unlimited costs.

Auditor Grant Thornton faces a £38 million claim by the company that it allegedly breached its auditing duties.

AssetCo, formerly part of British Gas, now offers fire engines and emergency services to Middle East countries.

It previously had an agreement with the London Fire and Emergency Planning Authority for the London Fire Brigade, providing engines to about 113 stations.