Parmalat Auditor Grant Thornton Says Enron Comparison Reckless

NEW YORK -- Grant Thornton International Chief Executive David McDonnell said it's “reckless'' to compare the financial scandal at Parmalat Finanziaria SpA, Italy's biggest food company, with the collapse of Enron Corp, Bloomberg News reported Tuesday.

“Comparisons with Enron are way over the top,'' said McDonnell in an interview. Grant Thornton's Italian firm is one of Parmalat's auditors. “Not enough is known about Parmalat.''

Grant Thornton audited the accounts of Bonlat Financing Corp., a Parmalat-controlled financing company based in the Cayman Islands that claimed to have money in an account at Bank of America Corp.

Grant Thornton says it had sent a request on Dec. 20, 2002, to Bank of America seeking verification of the account, and received a confirmation on March 6. After meeting with Italian regulators last week, the firm sent another request to Bank of America, including the earlier confirmation, said Nan Williams, a spokeswoman for Grant Thornton at Four Communications Plc. On Dec. 17, it received a fax from Bank of America saying it didn't have a Bonlat account and that the March 6 documents were false.

McDonnell said he doesn't expect Grant Thornton will be hurt by the Parmalat probe. Williams said it was the firm that first alerted Italian regulator Consob and Deloitte & Touche -- Parmalat's group auditor -- in June after Parmalat failed to answer a request for information relating to an investment in the Epicurum fund in the Cayman Islands.

Bonlat's auditors are helping Consob and the Italian prosecutor with their inquiries. The auditors don't face any disciplinary action from Grant Thornton, said Williams. Prosecutor Francesco Greco, who specializes in financial crime, accompanied tax police on Saturday to Grant Thornton's Milan office.

-- NYSSCPA.org News Staff

Posted on 12/23/03