Last Saturday, five companies took part in the Punjab National Banks’ (PNB) bidding session to conduct forensic audits for the ongoing Rs. 11,400 crore scam. The five companies were asked to put forth their bids by Thursday. The five companies include Deloitte, Klynveld Peat Marwick Goerdeler (KPMG,) PricewaterhouseCoopers (PwC,) Ernst & Young (EY) and Binder Dijker Otte (BDO.)
It is said KMPG quoted the budget around Rs. 21 million for the audit while BDO quoted Rs. 7.5 million and EY quoted Rs. 8.5 million. PwC emerged as the lowest bidder with a budget of Rs. 2.1 million. The appointed auditor’s work includes figuring out how the Letter of Undertakings’ (LoUs) were misused and looking into the accounts of Nirav Modi’s firms since 2011. Modi’s companies include Firestar International, Firestar Diamond, Diamonds R US, Solar Exports and Stellar Diamonds.
Recently, rumours spread out like wildfire stating PNB had appointed PwC for the audit. Earlier, the Securities and Exchange Board of India (SEBI) banned PwC from conducting any audits for the next two financial years. In 2009, PwC was accused in a fraud of $ 1 billion in the Satyam Computer Scam. PNB has denied appointing PwC for the audit. PNB said, “There are media reports that the bank has engaged PwC to conduct an investigation into the alleged fraud and PwC has been asked to gather evidence that can be used against Nirav Modi and his associates in the Court. The news is totally incorrect.” It is still unknown which firm PNB has appointed for auditing.
