Grocery giant Asda’a auditor EY reportedly resigned last year, despite the exit not being disclosed, in the latest blow to co-owners Mohsin and Zuber Issa.
EY is said to have notified Asda of its resignation in July 2023, despite this not being “widely disclosed” or mentioned when the Issa brothers were questioned by MPs at the end of last year.
Asda also said it notified lenders of its listed bonds in August, according to The Telegraph.
The resignation followed reports of a relationship between Mohsin Issa and a senior partner at the auditor.
An EY spokesperson said: “EY resigned as the auditors of Bellis Finco and Bellis Acquisition Company. As is required by the Companies Act, EY’s letters of resignation were sent to the companies on 27 July 2023.
“Following the acquisition of Euro Garages (Jersey) Ltd and the timetable requirements of the audit, we mutually agreed with the board to stand down as auditors for the group.”
A spokesperson for Asda said: “In a letter last summer, EY confirmed that they would not be able to undertake the enlarged audit – taking into account the acquisition of the EG UK&I business and the significant increase in scale and complexity of the Group within the timetable to issue their audit opinion for the year ended 31 Dec 2023. We notified investors about this on 8 August 2023.”
Big four firm Deloitte previously resigned as the auditor of the Issa brothers’ EG Group in October 2020 following concerns over EG’s governance and internal control.