Banksia's receivers target auditors
Auditors of the failed mortgage funder, Banksia Securities, may be targeted by receivers to recover any shortfall in the wind up of the firm. "There is an obvious issue around the role played by the auditor," Tony McGrath, one of the receivers, said on Friday, after a meeting of creditors.Bendigo-based accounting firm Richmond Sinnott and Delahunty audited Banksia.The receivers, McGrath Nicol, would need funding to pursue claims against RSD and the accountant's insurers.Earlier this month, in a report to investors, the receivers concluded that Banksia was probably insolvent some years before the trustees called in the receivers, in late October.The receiver has already made a first distribution of 20 cents in the dollar to investors in $663 million in debentures. It eventually hopes to return as much as 65 cents in the dollar.