Badenoch and Strathspey MP hits out at Cook's 'corporate greed'
The strath's MP Drew Hendry has lambasted the 'sorry tale of corporate greed' which stranded Thomas Cook customers around the world.
His comments came today (Friday, September 27) as the Business, Energy and Industrial Strategy Committee announced the launch of an inquiry into the affair, focussing on issues around the stewardship of the company, executive remuneration, accounting practices and the role of auditors.
The inquiry is also likely to examine the impact on small businesses and suppliers of the collapse of Thomas Cook.
In the light of news reports highlighting “aggressive” accounting practices at Thomas Cook, Rachel Reeves MP, chair of the committee has also written to Andrea Leadsom MP, Secretary of State for Business, Energy & Industrial Strategy, to raise concerns about the slow progress of audit reform.
The BEIS Committee’s inquiry on the Future of Audit concluded in April and made a series of recommendations to toughen the regulatory regime and to improve audit quality.
The committee’s inquiry will be seeking to question Thomas Cook executives including the CEO, finance director and chairman, as well as Thomas Cook auditors PwC and EY, the Financial Reporting Council, and the Insolvency Service.
The committee will also be approaching the chairs of the company’s Renumeration and Audit Committees to give evidence and will take the opportunity to question Andrea Leadsom on the Government’s approach to the collapse of Thomas Cook and to corporate governance and audit reforms.
Mr Hendry (Inverness, Nairn, Badenoch and Strathspey), who is a member of the BEIS Committee said:
“This is yet another sorry tale of corporate greed that has become all too common place in our society.
'The public rightly expect answers on how it came to pass that this firm was handing out eye watering salaries without audit, or scrutiny - leading to thousands of people losing their jobs, not to mention the hundreds of thousands of holiday makers left stranded across the globe.
“It is right that, as a committee, we look into the steps that led to the collapse and ensure those involved in the company’s demise face public scrutiny.
“I believe the Government has to go further to curb the kind of aggressive high-risk accounting practices that lead to companies of this size going to the wall. Protecting workers and consumers must be our priority.”