Oil Trading Company, Dram Oil and Trading Limited, has dragged auditing firm Deloitte and Touche to the Institute of Chartered Accountants Ghana (ICAG) and the Association of Chartered Certified Accountants (ACCA).

It wants the two regulatory bodies to take action against the firm.

Dram Oil has for months been battling Deloitte at the Commercial Division of the High Court.

It is accusing the firm of breaching its duty of care owed the oil company as well as being negligent in putting together a report.

Dram Oil wants the court to order the recovery of various sums in excess of $187,595,000 from the Deloitte.

Documents filed in court sighted by JoyNews traces the facts, giving rise to the case as originating from a commercial dispute that occurred sometime in 2013 between Dram Oil and Cal Bank.

The dispute ended up in court with Dram Oil obtaining a favorable judgement.

The court additionally made consequential orders for the appointment of an audit firm to “audit the books, records and inventory of the 7th Defendant relating to the subject-matter suit particularly with respect to payments, receivables, emergency cargo under recoveries received by 7th Defendant under the Tripartite Agreement.”

Deloitte and Touche is said to have tasked to undertake this audit in May 2018 after the initial auditing firm had failed to do so.

Documents arising from the Court proceedings which are believed to have determined the relevant facts relating to the dispute are said to have been available to Deloitte and Touche.

Dram Oil however alleges that the report tendered by the audit firm showed it had relied on “irrelevant, misleading and egregiously defective fictions that it called ‘assumptions’, which the Defendant knew or ought to have known were not true or reliable since the Defendant had no reasonable basis to believe
same to be true or reliable, all of which were wrongful and constitutes professional negligence.”

Dram Oil argues that the audit firm ended up making findings and conclusions that were contrary to facts established by the court in this favour; hence, the decision to initiate the legal action.

Dram oil wants the two bodies to look into the matter.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.