The bad stench engulfing water treatment business Phoslock...

The bad stench engulfing water treatment business Phoslock Technologiesand its admission of fraudulent accountinghas caused another stakeholder to head for the exits. Auditor KPMG says it wants to resign – which is fair enough, given the indignities Phoslock put it through.

After the false accounting and falsification of invoices and service contracts uncovered across Phoslock’s China operations, the water treatment company tried to get to the bottom of the mess by appointing a KPMG forensic team to help mark KPMG’s own audit home work.

False accounting and falsification of invoices and service contracts were uncovered across Phoslock’s China operations.

Now KPMG has had enough. Phoslock’s board will table a motion at its May 25 AGM to appoint ShineWing Australia as its new auditors. That’s the same ShineWing Australia that recently rebranded to “SW”, perhaps topublicly distance itself from the orbit of China’s largest home-grown integrated accounting firm.

Others heading for the exit door at Phoslock include its non-executive chairman, and Equitilink funds management founder,Laurence Freedman. He’s been on the Phoslock board since 2010 but will leave after the 2021 AGM, withBrenda Shanahanalso due to leave her role as chair of the audit committee.

The group’s local management, board, and audit committee – all of whom have ultimate responsibility for group governance – have carefully worked to shift all of the blame for the fraud on the miscreant Chinese, with shareholders left holding the bag.

Nothing left to say here......said it all before

Heads need to roll and walking away should not be an option