Property Ventures Liquidator Alleges PwC Helped Firm Skirt Insolvency

PwC advised Property Ventures (PVL) on ways to continue trading when by some accounts it was insolvent while at the same time giving David Henderson's failed property development company a clean bill of health as statutory auditor, the liquidators allege, The New Zealand Herald reported. Liquidator Robert Walker alleges that if not for PwC, the company would have been wound up in 2007, allowing loans to be called in, asset sales and a more orderly liquidation. Instead it trundled on until 2010, when it failed owing $69 million and was later put into liquidation. Henderson was bankrupted that year and has since been discharged although he's banned from being a director, which he is appealing. From 2006 until its failure, PWC gave the company clean audits. "PwC's role went beyond simply creating the opportunity for PVL's losses," Walker says in an April 7 affidavit. "I believe that this is not merely a negligence case. PwC were consciously involved in activities which were intended to assist PVL to continue to trade in the face of likely or actual insolvency." Read more.