OPEN LETTER IN THE CASE OF ERNST & YOUNG
Recently in May 2019, the Netherlands Supreme Court, consisting of 5 judges, declared judgement of wrongdoings by the multinational accounantcy firm Ernst & Young in the case where they delivered a Report against the former director of the Lotto Foundation due to which this person was fired and encarcelated during 10 days.
The Netherlands Supreme Court denounced E&Y of malpractice. This judgement was a confirmation of the sentence given a year earlier by the Court of Apeals (Higher Court) where 3 judges sentenced E&Y of negligence and manipulation of documents in their report against before mentioned director. The reason of this OPEN LETTER in the English language, is due to the fact that the multinational Ernst & Young has it’s headquarters in London and the declaration of the E&Y office in Aruba, stating that they completely “stand behind” their devastating report which was TWICE rejected, by the Court of Appeal and by the Supreme Court ( 8 judges in total)!
If this is the way E&Y prepare their reports, their clients must be quite carefull to accept such audit, consultancy or tax services, because it seems that E&Y worldwide is accustomed of paying millions due to their malpractices! Or does E&Y Aruba wish to present the 2 sentences by 8 judges as a farewell gift to their CEO mr. Mark Weinberger in London who is leaving E&Y shortly? Or are the 2 veredicts a celebration issue for their 30th or 170th years of existence? If this is what E&Y means with their slogan:”building a better working world”? My Goodness !
Beware, beware! It may be interesting to mention the following cases where E&Y had to pay millions in claims due to their negligence, falsifying documents, malpractice, manipulation, bad advice, etc.etc.: In 2009 E&Y had to pay Akai $ 200.000.000.=( 2 hundred million dollars) for negligence, in Hong Kong the police even arrested the E&Y audit-manager and their report was called “a morass of dodginess” (dirty handlings).
For their malpractice in New Jersey and California, they had to settle for millions of dollars. Their “dirty” handlings in the so-called “Luxembourg Papers”, where millions of dollars were canalized thru Luxembourg, also gave E&Y quite some negative publicity.
In 2009 the NY Times mentioned that E&Y had to pay 8.5 million dollars due their errors and in 2011 they had to pay 125 million dollars in Australia, also due to their malpractice. One of the biggest accountancy scandals of Japan, was the involvement of E&Y in the Toshiba Company, where they were sentenced for “their grave breach of duty and their operations were deeply improper”!
Japan even prohibited E&Y to accept new clients or take new cases in Japan for a period of time and they also published the names of 7 accountants involved in this terrible “mess”! The greatest “BLUNDER” by E&Y was their screaming blooper made in the EU-project for the Baltic countries, where due to their wrong advice, manipulations and miscalculations, the cost of the project was an additional 4 billion euro’s (4.000.000.000.=) as mentioned by the press in Tallinn, Estonia!!
This may sound incredible? Anyone can do some reseach and find all info. After the veredict by the 2 courts in which E&Y was accused of malpractice, there have been no reaction from the accountancy field. Instead of apolologizing to the Aruban community for mis-using a huge amount of money that should’ve gone to the sports in Aruba and by producing a malpractice-report which has been severely critized by the courts, E&Y Aruba shows very little respect and credibility by stating that they stand behind their report, while the Lotto Foundation should also appologize for their misuse of sports-funds!
The Aruban Association of Accountants seems to deaf & dumb in this case and the veredicts in this matter by the Higher Courts and by the Netherlands Supreme Court, should be sent to the “Koninklijke Nederlandse Beroeps Organisatie voor Accountants/NBA” and also to the “Accountants- Kamer” in the Netherlands. It seems that E&Y never learn from their malpractices!!