Tuesday, May 17, 2005
The internal investigation at Delphi, the large auto parts supplier, is coming to a close, with more executives being dismissed for their involvement in improper accounting. In early March, the company announced the dismissal of its CFO, Alan Dawes, and two other accounting executives (see earlier post here), and Delphi's Form 8-K filing (here) on May 16 adds to the list of those losing their jobs over the accounting problems:
As previously reported, the independent investigation by the Company’s Audit Committee of the Board of Directors is substantially complete and the Company is in the process of preparing restated financial statements for audit and review by its independent auditors, Deloitte & Touche LLP. At the same time as management has been preparing the restatement, the Audit Committee is finalizing its review of the conduct of various individuals who had supervisory authority for others involved in or were directly involved in certain of the principal transactions under investigation. Certain lower and middle level executives in the Company’s finance staff will be resigning from the company.
The SEC and criminal investigations should now move to center stage as the case shifts into the next phase with individuals tied to the accounting problems identified. With CEO J.T. Battenburg slated to leave the company by the end of the year, Delphi will look to settle any civil and criminal cases as soon as possible so the new CEO starts with a clean slate. (ph)