A whistleblower is suing one of the so-called big four professional services firms for failing to disclose improprieties in a gold refiner’s trading activities.
Ahmed Rihan accuses his former employer EY of mishandling an audit of the activities of the Dubai-based Kaloti group.
Allegations
In documents filed in a London court, Rihan claims that an EY report into the refining group that was eventually submitted to Dubai Multi Commodities Centre (DMCC) in its regulatory capacity had been substantially rewritten to mask material trading improprieties.
Rihan had originally been leading the audit but says that after his team uncovered gold bars disguised as silver and imports from Sudan purchased without due diligence to verify that these purchases were not conflict gold he was replaced and the report EY eventually submitted to DMCC was substantially rewritten.
Responsible sourcing
The Kaloti group required EY’s audit clearance to verify that their gold was responsibly sourced and met with DMCC’s governance standards.
The final report submitted to the regulator allegedly contains only scant references to the improprieties Rihan claims his team discovered.
Categories: Trade Based Financial crimes News
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