Andersen sacked at Mayflower

EMBATTLED accounting firm Andersen has lost its first British audit client since the Enron scandal erupted - and former Prime Minister John Major is thought to have wielded the knife.

Bus and coach maker Mayflower, where Major is a non-executive director sitting on the audit committee, is understood to have sacked Andersen after five years as its auditor. An announcement is expected shortly and Mayflower shareholders will be asked to vote on a new auditor at the annual meeting next month.

Andersen has lost several high-profile American audit clients, including drugs giant Merck and the housing finance group Freddie Mac, but until now it has kept the loyalty of its British customers.

It is thought the decision was taken by Major and his two audit committee colleagues, David Harland and Rupert Hambro. It is not known why they decided to end the relationship with Andersen. Mayflower declined to comment. Andersen's other UK clients include Cadbury Schweppes, ad agency group WPP and Carphone Warehouse.

<

David Crossland, chairman of Airtours, came to the defence of the firm last month, describing the attacks on Andersen as a disgusting witch hunt. Andersen is under criminal investigation in the US over its role as auditor and adviser to Enron, which collapsed last year amid accounting irregularities.