Welcome to Fortfield.com


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

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 SVP –

listen 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 2011 – see 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: Canada: class 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 as “an 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/untruthful: A340 quantities – “management asserts” – PwC para 8.72/8.76 – untruthful/ 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
Email exchange between Paul Moore and Phil Hodkinson re HBOS Accounting 1-4 March 2011