Kroll says PwC audit report misrepresented situation at PrivatBank

Kroll company has revealed the inconformity of an audit report of PricewaterhouseCoopers (audit) LLC (Kyiv, the Ukrainian structure of PwC) with real financial situation at PrivatBank, according to a presentation of the National Bank of Ukraine (NBU).

"The secret structure in the bank carried out ... numerous operations of bank fraud and fabrication of reports by former management and directors of the bank under the leadership of former shareholders and in favor of former shareholders and a group of affiliated persons. In spite of this, the independent auditor's conclusions on PrivatBank's financial statements during 2007-2014 contained positive conclusions, and in 2015, the auditor provided a conditional-positive conclusion," the NBU said.

As reported, on July 20, 2017, the NBU removed PricewaterhouseCoopers (audit) LLC from the register of audit firms that have the right to conduct audit of banks.

"The audit report issued by PricewaterhouseCoopers Audit LLC failed to highlight the credit risk exposure faced by PrivatBank, which led to the bank being declared insolvent and nationalized, with substantial recapitalization costs borne by the state," the central bank said.