KPMG accused of 'untruthful' defence in Silentnight probe

KPMG has been accused of giving a “fundamentally untruthful” defence during a tribunal hearing over its role in the sale of mattress company Silentnight to a US private equity firm. The disciplinary tribunal found that KPMG and David Costley-Wood, the senior partner who led the firm’s work on Silentnight, had failed to co-operate with the case because it did not provide evidence to investigators at the Financial Reporting Council. KPMG was fined £13m in August for serious misconduct after the FRC found it had a “deeply troubling” conflict of interest in its role in the sale of Silentnight to HIG, a private equity firm. The FRC published the disciplinary tribunal’s full decision on Wednesday, with Elizabeth Barrett, executive counsel, saying: “KPMG and Mr Costley-Wood compounded their serious misconduct by advancing a defence to proceedings which was partly untruthful and by failing to cooperate with the investigation.” Mr Costley-Wood, who left KPMG last year and was paid more than £800,000 in each of his last two years at the firm, described the case against him as a “witch hunt” during an outburst at a tribunal hearing last year.