KPMG Iceland Ceases Investigating Glitnir Bank Skip to content

KPMG Iceland Ceases Investigating Glitnir Bank

Auditor KPMG Iceland decided yesterday to discontinue its investigation of trade within Glitnir Bank before it went bankrupt following criticism of its work. The investigation will therefore be delayed by up to two months.

Glitnir’s headquarters in Reykjavík. Copyright: Icelandic Photo Agency.

“It will cost more and take longer. On the other hand, if people are suspicious that something is being connived at we don’t want to prevent others from participating in the project,” Árni Tómasson, chairman of the resolution committee of old Glitnir, told Fréttabladid.

KPMG’s participation in the investigation was criticized because the auditor had also worked for old Glitnir’s largest shareholders. KPMG therefore decided to cease investigating the bank and, according to Tómasson, will not receive payment for its work.

The Glitnir resolution committee is now having discussions with auditor Ernst & Young on resuming the investigation. All possible connections between the auditor and old Glitnir are currently being looked into, Tómasson said.

KPMG launched its investigation of old Glitnir in October and the auditor was expected to hand in a report after about one week. Now, a conclusion of the investigation cannot be expected any time soon.

“We are probably talking about February. Also, [Ernst & Young] have much less information about [old Glitnir’s operations],” Tómasson said. It is unclear whether the new investigator will be able to use some of the information gathered by KPMG.

“Since [KPMG] chose to leave the project they own the data and will not get paid. I don’t know whether we can reach an agreement with them on partial payment for the exchange of some of the data,” Tómasson said.

Click here to read more about KPMG and Glitnir and here to read a Daily Life about the matter.

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