Magellan Released January 2010
Additions Apr/May 2010 & Jul/Aug 2010 & 19th Nov 2010 & 18 / 31 Jan 2011 & 25 Feb & 14 March 2011 &7th Apr & 5/9/25 May 2011 & 16, 22, 28 Nov & 17 Dec 2011 & 10th Jan 2012 & 5th Mar 2012
 

   Chair of PwC Fraud






MAC Chairman :
Mr Murray Edwards TESTIMONY









UK Financial Times PwC pledge on excellence and integrity

Authenticity
Have you - PwC - taken the mirror test?

PwC Points of View:
Less Regulation, more Responsibility?

Dennis Nally, Chairman of PwC International :
"If auditors aren't doing enough, who's going to pay for them to do more?"

 


PwC testimony

Biggest audit firms hit by scathing regulator’s report

Banking trio fail to meet accounting standards , claims Financial Reporting Council

Accountancy lost sight of its primary role to the detriment of us all

FSA – wanted someone to whitewash RBS and, sure enough PWC obliged

The FSA/PWC investigation into RBS “bad decisions” is a joke, right?

Ernst & Young is Nuts to say Lehman was clean

Big Four accountancy firms furious at prospect of competition probe

Michel Barnier’s new audit rules see angry revolt

Big Four finally held to account

Holding the auditors accountable for missing corporate fraud

The importance of being ethical – Canada CA.

Tree falls on Sino-Forest (E&Y Canada) Auditor can’t hear it

Dismissed partner accuses Ernst & Young of Corruption

“Big 4” audit firms had pivotal role in global financial crisis  

Audit Watchdog finds Higher Deficiency Rates at Two of Big Four

Is PWC conspiring to Evade liability for Frauds in Iceland and India?

Financial Scandal Aficionados Never had it Better

 

Click here for News and forthcoming events information ......... Kimberly and Ryan engagement : 21 December 2010…….their website
Dad – George Little                                  8 March 1927 – 15 October 1997 …….  Address/Tribute – Dr Alan Russell
Mum - Rosemary Jane Little                     8 Sept 1932 - 18 Sept 2010...    Order of Service            BPC Magazine Oct 2010
Service of Thanksgiving
  Selection(30 Minutes - 30MB)
Reading : Psalm 121 - Lorraine J. Little           Poem : "I'm Free" - Peter G. Little              Address / Tribute - Dr Alan Russell

Former Senior Officer and SVPhttp://www.fortfield.com/images/tape-symbol.giflisten to MAC.Q3.2006 webcast Q&A:Mr Proulx (read p.15+)
UK Times : Oct 2006 : Read "End Looms for Airbus A340 as Emirates cancels $4bn orders

Mr Little : “  No, I’m publicly whistleblowing <on A340 500/600>.   It’s still wrong and I’m going to give evidence that is the case.” - Stated in March 2009 evidence in UK public court/Tribunal hearing   -   ……………PwC [Mr John Tracey] - …. not just simply wrong, ........but beyond incompetence to an act of ”Forensic deceit”..... see also my Summary : A340 analysis - PwC Engagement

 
Airbus A340-500/600 aircraft ---------- Magellan provide the Exhaust Nozzle & Plug for this Trent 500 engine nacelle

Mr Little

Major concerns about A340, C$40m plus on Magellan balance sheet                                               (True and Fair View)

Mr Dimma

Yes...............................................................................and also read Airbus press release at Farnborough Airshow –July 2006 : Flight. 1 August 2006

Mr Little

Significant challenge to inventory value, significant impact on future asset value and cash recoveries

Mr Dimma 

Yes

Mr Little

EAC – estimate at completion document – did the Audit Committee look at this regularly?

Mr Dimma 

Yes

Mr Little 

I raised the issue about this in Q2.2006

Mr Dimma

Yes........................................................................................................................................and also read  MAC Earnings webcast Q2.2006.15 August 2006

Mr Little

Vol 5 /1830  A340 Estimate at Completion  June 2006   Q2.2006

Mr Dimma

Yes

Mr Little

Gross profit / loss was a  $ 5m+ loss

Mr Dimma

Yes, I see the number ……he continues ..and also read MAC CFO, Mr. Dekker, evidence on A340 EAC and also PwC on Financial Control at MAC (DT)

Whistleblowing  – C$3m+  Independent Forensic Investigation” - January – August 2007: PricewaterhouseCoopers LLP.
   Airbus A340 series production in Toulouse is complete ;   I warned PwC about Spares & full replacements ;  I told PwC that they should obtain 2/3 external market forecasts (7 available); : I even told PwC about the Emirates cancellation of 18 A340 600 in Oct 2006, which they left unadjusted in their Airbus Order Book analysis ;   “And the fundamental issue here… is that this product is a product that has not only got a cost/price problem but it’s now also got a programme volume one!”
Facts Invitation not issued. Chairman & Snr Partner(PwC UK): Mr Ian Powell and CEO & Snr Partner (PwC Canada) : Mr Christie. B. Clark

I have formally asked Mr Ian Powell to repay the C$3m+  in fees paid by the hard-pressed Magellan shareholders in 2007 (and offered to support the MAC Chairman Edwards in that recovery from PwC)  on several occasions since July 2009.........  MAC beginning at AGM in May 2009 (p.8)

When the PwC/MAC cover-up/smokescreen disintegrates over time, due to the lack of commonsense and reasonableness checks  , the “Truth will  Out”?

By “Forensic Deceit I mean that it is NOT TRUSTWORTHY, because the intention of  PwC, and the effect of their less than rigorous investigation or audit standards, was to mislead the reader in their “findings of fact” and conclusions from its “forensic investigation”……..Beyond Belief. As you can hear, should PwC  with their assertion of “great skills in holding a mirror up” actually firstly look in that mirror themselves, prior to trying to credibly convene and participate in this important public debate? You may also wish to reflect on their Chairman's Speech, Mr Powell, in Oct 2010 on “Building Public Trust” and his recognition, as PwC leader, of his “personal responsibility to imbue his organization with integrity and professionalism”. Also read UK FT letter.

Magellan Aerospace Corporation - MAC
(A Public Company on the Toronto Stock Exchange (TSE) – Ticker : MAL.................. Jan 2012 stock market news : after 2008/9 AGMs

Chairman of the MAC Board:
Chair of the Audit Committee:

Chair of the HR and Comp Committee:

Mr N. Murray Edwards
Mr William A. Dimma

Mr William G. Davis

(HIS 12th Aug 06 email: My 11 Sept.07 email & 27 Nov 09 letter)
(14/17 Nov.06, 11 Sept.07, 27 Nov.09 and 17 Sept.10 docs. And Dimma:Nov2011:Dec2011 G&M videos & articles April 2009:May2011: )
My 27 November 09 letter/folder by FEDEX to all MAC Directors
Public Auditors for Magellan Aerospace Ernst & Young LLP MAC AGM May 2009 P. 6-9 OPEN LETTER TO E&Y -5 May
     
                                                                                                                                            and then again to E&Y – 26 May 11
and  link to email and comprehensive document on A340 termination history/evidence – 15 November 2011 …. 
(to Mr Edwards, Mr Dimma, PwC UK Chairman & Snr Partner Mr Ian Powell,  E&Y Canada Chairman & CEO Mr Trent Henry, Mr Lynch QC)
(It was also someone who formerly worked for E&Y (Mr Matthew Lee) who blew the whistle to the E&Y auditors in May 2008 before the financial collapse of Lehman Brothers in September 2008 – see articles in Part L – “professional malpractice” etc). 

Since this UK Times article my MP, Mr Jim Shannon, has explained to me that the Lehmans/E&Y events are now under investigation by the Accountancy and Actuarial Discipline Board <(AADB) – part of the Financial Reporting Council (FRC)>  in the UK.   The Guardian newspaper reported that a legal suit would be filed this week (actually filed 21 December 2010) by the New York Attorney General, on the basis of Matthew Lee’s allegations and the bankruptcy examiners 2000+ page report in March 2010.

FRC – “Auditor Scepticism – raising the bar” (para 17–25) : BL Input : FRC written submission (paras 2.7 - 2.11) to the House of Lords. 
House Of Lords Economic Affairs Committee hearing –  23 Nov. 2010  (watch video from 1 hour 2 mins – Transcript Q.266 pages 29-46) Banking crisis, Going Concern audit statements, Balance Sheet audits / asset valuation and loss reporting,  and financial reporting standards    Mr  Ian Powell – PwC UK :   ;  Mr Scott Halliday – E & Y;  Mr Griffith-Jones – KPMG; Mr Connolly – Deloitte : Accountancy Age Video, Media coverage -  “Lords accuse auditors of deceiving investors” ,  “Lawmakers attack auditors over bank statements”.
The HOL committee published its report on 30 March 2011see Chapter 6 and para 145 re Northern Rock-

We are astonished that PwC appeared not to recognize an amber light that flashed so brightly.” Willful blindness: Canadaclass action  example

Extract from PwC written evidence to the House of Lords Economic Affairs Committee –  at para 24  
“Professional scepticism is fundamental to what auditors do. It is defined in auditing standards asan attitude that includes a questioning mind, being alert to conditions which may indicate possible misstatement due to error or fraud, and a critical assessment of audit evidence.” and at  para 25
It is the job of the auditor, as established by internationally agreed auditing standards, to challenge management’s assertions and ensure that they are backed with evidence that is appropriate, supportable and capable of independent verification. It is not the auditor’s job to develop alternative views and then try to persuade management to adopt them in preference to theirs.” and then read this example of A340 pricing – “management’s assertion” – PwC para.8.62b – maths wrong/untruthfulA340 quantities – “management asserts” – PwC para 8.72/8.76untruthful/ industry PwC logic+maths wrong …………… Summary : A340 analysis

FRC/APB – “ Audit is essential to public and investor confidence in companies… The application of an appropriate degree of professional scepticism is a crucial skill for auditors. Unless auditors are prepared to challenge management’s assertions they will not act as a deterrence to fraud nor be able to confirm, with confidence, that a company’s financial statements give a true and fair view.”
Mr Paul George – FRC /POB Director  :   Daily Telegraph July 2011  “Biggest audit firms hit by scathing regulator’s verdict"

You may read the PwC letter/public response to the FRC “Auditor scepticism …” Discussion Paper …(by Mr Sexton in the above PwC Trust in Business Video)

Whistleblowers Speak Up - Nick Cohen - Banks will begin the process of reform when their employees aren't penalised for speaking out  “ The national consensus holds that the City is being “rewarded for failure”  and, for once, the national consensus is right …   What we must grasp if there is to serious reform is that the bonuses are rewards for cowards as well as for failures…….

The question should not be “who knew?”  but why did they not speak out.  In theory, nothing was stopping them, as Britain offers legal protection to whistleblowers.   But as so often, the theory is one thing and the practice quite another.  Workers are meant to be free to reveal criminal offences and failure by their firms to comply with legal obligations.  The law sounds impressive, but it insists that an employee must go to his or her employer before they go public.

“It is like telling a mouse to go to the cat.” David Buckle, one of London’s leading employment lawyers, told me.      …….…   We need to break up a system that rewards those who bite their tongues because it suits their private interests and punishes those who speak their minds in the public interest. We need to recognise that we live in a half-free country, where we have freedom of speech at home but not at work; where people pride themselves on their freedom to criticise politicians, but dare not criticise their employers. ”  ……… or those professional individuals and firms they engage in the “cover up” of the truth. 

Charles Ferguson’s movie about the financial crisis, Inside Job, released in the US in October 2010, richly deserved to win ‘Best Documentary’ at last night’s Oscars. Giving his acceptance speech last night, Ferguson sought to awaken the star-bedazzled audience from their somnambulance by saying:-   “Forgive me, I must start by pointing out that three years after our horrific financial crisis caused by financial fraud, not a single financial executive has gone to jail, and that’s wrong.”  YouTube - INSIDE JOB: New Documentary Exposes How 'Banksters' Continue To Steal Our Money  and  Inside Job director on Geithner, Goldman, and criminal bankers – Fortune.   New York Times  Charlie Rose - Gretchen Morgenson interview on lack of prosecutions in the aftermath of the crisis and then Wall Street persists with line “Trust Us. We can regulate ourselves” see excellent interviews with Eliot Spitzer on CNN.

The UK Financial Times on 14 March 2011 had an article by John Board in the Dean’s Column : In Praise of Whistleblowers” ; but what consequences for them in long-term career terms and very often their personal health”

Supplementary submission by FRC to the House of Lords Economic Affairs Committee  on Auditors in Nov.2010  “We believe the independence of the process is compromised by the requirement placed upon the AADB to consult and seek the agreement of the professional bodies – this is the product of the previous self-regulatory system that we believe should now come to and end. To address this issue we therefore propose the clarification and streamlining of the AADB’s discipline scheme. All disciplinary cases relating to public interest audits (and PIDA cases) should fall to the FRC/AADB in the first instance”    

Supplementary submission by Mr Vernon Soare Executive Director Professional Standards        of the ICAEW to the House of Lords Economic Affairs Committee -- November 2010

...  I would like to comment on a number of the points that were made during the Committee hearing on Tuesday 9 November at which representatives of the supervisory community, including the Financial Reporting Council (FRC), gave evidence. As a Recognised Supervisory Body (RSB) for statutory audit under the Companies Act 2006, the ICAEW has a useful perspective to offer on the matters raised.  ……….
“With reference to the AADB, it is able to use any disciplinary sanction open to the ICAEW, including the power to impose unlimited fines and exclude from membership. This arrangement continues the powers enjoyed by the AADB's predecessor body, the Joint Disciplinary Scheme (JDS). Like the JDS, the AADB independently investigates public interest cases against audit firms registered with the ICAEW and is designed to play a key role in maintaining confidence in the UK audit profession. However, despite accumulating a substantial caseload the AADB shows no evidence of an ability to meet the promises concerning speed and thoroughness of investigation made at its outset. Indeed, according to its website, since announcing its first investigation in 2005, the AADB has brought only two cases to a tribunal hearing. An independent review of the effectiveness of its work may now be timely.”

House of Lords Economic Affairs Report on Auditors – March 2011 - paragraph 110
“The regulation of accounting and auditing is fragmented and unwieldy with manifold overlapping organisations and functions. This is neither productive nor necessary. Other professions have only one regulator—medicine for example under the General Medical Council. The wider powers sought by the Financial Reporting Council would go some way to simplifying and streamlining matters for audit. But further impetus needs to be given to rationalisation and reform. We hope and expect that the profession will provide that impetus. In the absence of rapid progress, we recommend that the Government stand ready to impose a remedy.”

Government Response / Dr Cable MP – June 2011
"BIS and the Financial Reporting Council (FRC) expect to consult on possible reforms to the FRC's powers and structure during the forthcoming months. This will include any proposed legislative changes. "

AADB Disciplinary – PwC with JPMorganSL - £1.4m

BIS/FRC Consultation on the Reform of the FRC – closed 10 January 2012  which at Q6…..
 REMOVES the regulation /discipline for all professional conduct matters from the FRC

Mr Paul Moore

Cameron calls for criminal charges against bankers responsible for credit crunch
“HBOS whistleblower Paul Moore: Evidence to House Of Commons “Banking Crisis Hearing”
House of Commons Hansard: Prime Minister’s 11 Feb 09 questions - G Brown and D Cameron
Second HBOS whistleblower "Total disregard to the risk process" under leadership of Sir J Crosby
Why Crosby must step down from FSA, and step down now
Press release issued by Paul Moore on 13 March 2009 related to his evidence to the TSC’s inquiry
KPMG and the HBOS whistleblower
Andrew Tyrie warns FSA not to repeat RBS mistakes with HBOS
BIS checks criminal allegations against Sir Fred Goodwin  
Andrew Tyrie warns FSA over HBOS report
BIS/FRC Consultation on the “Reform of the FRC” submission – Accountants conduct -  Mr Paul Moore
...Correspondence exchanges with Mr Moore’s MP, Miss Anne McIntosh L.L.B (Hons) et al 
Letter to Mr Andrew Tyrie MP, Treasury Select Committee Chairman, Jan 2012

Mr & Mrs Paul Turner
 

The HBOS Reading Fraud : Future of banking
Three held over fraud investigation at HBOS branch
Arrests expected in Bank of Scotland fraud probe
Board’s role “off limits” in police probe of alleged £1bn HBOS fraud

House of Commons Hansard:2 June 2009  
BIS/FRC Consultation on the “Reform of the FRC” submission
Email/letter with Mr & Mrs Turner’s MP, Mr James Paice on FRC submission.

Mr Ian Foxley

Bribery probe into £2 billion arms deal    
SFO probes EADS defence contract with Saudi Arabia  
£2 billion UK - Saudi bribe scandal        Sunday Times October 2011   :   Part 1   and  Part 2  
US investigates EADS Saudi deal
SFO delays Bribery inquiry
BIS/FRC Consultation on the “Reform of the FRC” submission : Mr Foxley letter to Business Secretary
(Employment Tribunal Judgment…September 2011 ….
Correspondence exchanges with Mr Foxley’s MP, Miss Anne McIntosh L.L.B (Hons)FRC submission:ET legislation

Mr Graham Senior Milne

Whistleblower alleges “largest sustained cooking of books in British financial history”  by PwC
McFall’s committee “ignored FSA’s complicity in crisis” :  His Submission to Treasury Select Committee
Mr Milne:   Legal action against the Institute of Chartered Accountants in England and Wales
Northern Rock complaint : Lloyds/HBOS complaint : ICAEW April 2010 response : FRC/AADB response His Application for Judicial Review – ICAEW – Northern Rock and Lloyds – PwC auditors  
FRC/AADB defences to Judicial Review     -  Initial Judgment and Renewal of Claim
BIS/FRC Consultation on the “Reform of the FRC” submission – Mr Graham Senior Milne 
E-Mail with Mr Milne's MP Sir Alan Beith - Chairman of the Justice Select Committee

Miss Mira Makar

Ousted Triad chief seeks independent enquiry PwC were their Auditors; by forensic team at Baker-Tilly
Sacked whistleblower chief vindicated
Extracts from Court transcripts of Public evidence in Royal Courts of Justice – 21 April 2011
BIS/FRC Consultation on the “Reform of the FRC” submission – Ms Mira Makar – and Atthm May 2007
Email with Ms Makar’s MP, Mr Mark Field MP

Mr Brian Little

True to type, innumerate accountants PWC
{+E&Y} bent “reality”  to suit client's needs
Will Edwards stand by Magellan?
Magellan accused of inflating project size
Magellan sails into rough seas – stock pops, former executive threatens action     
PwC reported to accounting regulator after taking criticism of client from report  --   PwC  changes
Brian Little’s turbulent battle with Magellan Aerospace
New RCMP (Royal Canadian Mounted Police) head takes tough line on white-collar crime

 

BIS/FRC Consultation on the “Reform of the FRC” - submission by my constituency MP, Mr James Shannon.

FOI  - Lack of accounting regulatory and disciplinary information in BIS / FRC /Accounting institutes – Mr Shannon MP

8.0

Accountancy/Auditors – perceptions of “independent forensic accountants”

"Both Ernst & Young and PricewaterhouseCoopers were comfortable with the manner in which Magellan Aerospace justified the quantity of units expected to be delivered. For the sake of clarity we also attach a document that Magellan has recently prepared, which shows at a glance the assessment that would have been carried out by the auditors in order to satisfy themselves that the accounting on this matter was appropriate." - As at Feb 2007

When PwC asked Magellan to prepare projections based on my information on 29 January 2007 for a total A340 -500/600 build of 135 aircraft Mr Neill instructed that the MAC 16 February 2007 Spares numbers be substantially uplifted by 500%+ to meet the EAC amortization quantities.

 

I understand from other people within Big 4 audit firms that Forensic accounting people consider themselves to be amongst the “elite” members in their accounting/audit profession. I also believe from my research that most lay people would attribute such roles in such people and firms as having the following characteristics:

8A

Numeracy / finance skills – basic logic and mathematics – see paragraphs 9.1 and 9.2

8B

Reliance on them – comprehensive/thorough = truth / trust underpinned by independence / Objectivity –see paragraphs 9.3, 9.4 and 9.5

8C 

Access to information – global knowledge management / other audit clients and public information underpinned by technology in access to documents and records – see paragraphs 9.6, 9.7 and 9.8

8D

Professional scepticism , checking and validity:audit testing and deep technical skills – paragraphs 9.9 & 9.10


Some of the PwC steps in their act of A340 “Forensic deceit”         Private Eye 

9.1

A340 500/600 Pricing          -     numeracy and logic

The day before the MAC FY2006 financial results were announced Mr Neill told PwC that despite his knowledge that the A340 500/600 upgrade programme had been cancelled from August 2006 in an email that

"The Forecast International Data assumes Airbus will be unavailable to further improve the A340-500/600. and yet history has seen the opposite and the example I would use is the A300 which first entered service in the early 1970s and production is only now ceasing. I hope this deals with points raised in the telecon tonight."

10 – 14   November 2011

Airbus Press Release A340 Production termination – at a 131 aircraft build

EASA Investigation Final findings of fact and conclusions – A340 exhaust system life / maintenance

9.2 A340 500/600 Volumes/ Quantities   -     numeracy and logic
   
9.3 A340 Customer delivery projections from Airbus – totally excluded in PwC analysis / assessment
9.4 A340 External Market forecasts from third parties – PwC not comprehensive / thorough
9.5 Independence/Objectivity – professionally compromised
   
9.6 A340 500/600 External market forecasts - failure to access global information
9.7 A340 500/600 Data from other Publications – including the file provided by MAC CEO, Mr Neill
9.8 Airbus Aircraft A340-500/600 “Website” Order Book   -   wrong analysis / assessment
   
9.9  Airbus A340-500/600 Unit Delivery projections - failure to check and audit testing validity
9.10 A340-500/600 pricing projections – failure to check and audit testing validity

Aerial View from the East / Irish Sea (Low Level)

All "Littles" Families BBQ at Fortfield - July 2000
Family and Friends at "Boxing Day / Uncle James' Birthday Party"
Kimberly's New Year's Eve (2000) Formal Party Guests - Group Photo

Alan at his surprise 40th birthday party
The kids at our Christmas party 2001
The Little families in Florida - April 2002
Mum's 70th Birthday Party
Everyone at the Silver Wedding Anniversary - Tennis Court Patio
Brian, Jackie and Girls - Silver Wedding Anniversary - Our Garden
Brian and Jackie - Silver Wedding Anniversary - Our Garden
All the Little and Bell families
Girls "Silver Wedding Anniversary" Gift - July 2005
Brian and Jackie on their African cruise - November 2005

Brian's 50th Birthday presentation at Fortfield - 25th April 2007
Everyone at our "Pearl Wedding Anniversary" - family party - July 2010

E-Mail Contact Us

 

Following multiple requests for  twitter link you can now follow from 31 January 2011 @fortfield

Brian Little and Magellan Aerospace Corporation
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quote from a friend of Caroline - 2005