Destia's accounting issues to a conclusion

21.01.2011 14:00:00

A special audit was carried out at the wholly state-owned company Destia in 2009. The main aim was to determine the lawfulness of the actions taken by the company’s former management and its auditor. According to the audit report, Destia’s board was not sufficiently informed about all audit findings. Ernst & Young served as auditor to Destia during the accounting year between 1 January and 31 December 2008.

The special audit and the police investigation into the former CEO’s role have not revealed grounds for charging the company’s auditor with any criminal offence or for demanding compensation.

Following discussions with Ernst & Young, conducted in the light of the special audit and a statement by Roschier, a Northern European law firm, the parties have reached an understanding. In respect of Destia’s complaint, Ernst & Young is to make a lump sum payment of EUR 100 000 to settle all outstanding issues.

On receipt of the compensation, Destia and the State of Finland, as Destia’s owner, will have no claims against Ernst & Young or the auditors responsible.

Inquiries: Pekka Timonen, Director General, Prime Minister’s Office, tel. +358 9 1602 3000

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