Sigrún Davíðsdóttir's Icelog

The Glitnir Winding-Up Board has sued not only PwC Iceland but also PwC UK, according to Ruv. This case is further in the process than an identical case that Landsbanki WUB is pursuing against the bank’s external auditors, incidentally PwC, due in court in June. The Glitnir case will come up in the Reykjavik District Court April 12.

Glitnir seems to be suing PwC for the 2007 accounts, which wrongly reflected risk assessment, loans to related parties (the weak point in all three banks according to the SIC report) and evaluation of the bank’s assets. All of this made the bank appear in a much better shape than it really was and caused damages of tens of billions of krona, possibly as much as ISK100bn, according to the WUB. The writ was presented to PwC on January 31. Following this action, PwC UK was presented with a writ from the Glitnir WUB.

As pointed out earlier, it seems logical that the auditors of all the banks will be presented with similar cases since the SIP report indicates similar shortcomings in all the banks. The really interesting question is if the Office of the Special Prosecutor will take action against the banks’ external auditors.

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