Smart People

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Former Thomas Cook staff protest in London after The Company used went into liquidation

accounting firm EY, the wrote signed off on the Thomas Cook credit prior to its collapse, a report to the award to his former boss a £5m bonus.

The bonus, Paid former chief Executive Manny Fontenla-Novoa, was followed by a strong criticism of the 2007 merger with MyTravel.

Senior EY-employees will appear on Tuesday before a panel of members of the investigation by Thomas Cook collapse.

The Audit Firm , declined to comment.

Christine Cooper Department of accounting at the University of Edinburgh Business School, provided advice to the ability of the auditor to be truly independent if they are Paid by companies, audit, and, as in the case of EY, can you with the other advice in The Past .

"these are Smart People , But how could wrong so completely?", Professor Cooper said.

"With all The Regulators and goodwill in The World , if you pay for a service you're paying for a service. If you pay someone for something, how much independence you have?"

Dave Crichton was a pilot with Thomas Cook , to The Company , the collapse

the Pilot, Dave Crichton, the Thomas Cook MyTravel in 2007 merger, said he was "angry" about The Company 's collapse ", because I think it has been resolved".

"I fly the planes That I see how many people are on it, I know what the seat prices are. And think about where I was, was an absolute cash-cow. "

Internal Thomas Cook documents seen, the making of the BBC show his airlines business, which was Mr employed by Crichton, on the way for £129 in the profit he lost in this Year - But still doing his job, when the larger group is broken.

"It was a very cash-rich company, which spent only on enterprises, which came with debt. That is. the biggest fails That no part of him to save," he said.

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Thomas Cook , whose founder was born during the Industrial Revolution , was in the UK, the oldest holiday company before the liquidation in September.

The collapse costs around 9,000 UK jobs and left around 150,000 holidaymakers stranded overseas, which had to be sent back, at an estimated cost of £100m to the taxpayer.

the chief executive at the time, Peter Fankhauser , said last week That The Company is dragged down by its debts of more than £1. 4 billion in 2018.

"I'm sorry for not able to turn to this company to pay to the Tempo and really back this debt.

"Since 2012, we have Paid £1. 2 billion in interest costs and refinancing costs. Imagine if we had only invested half of That in the economy, we could have been faster," said Mr Fankhauser said.

'Anything to report'

the Former senior Thomas Cook executives, told the BBC, the liabilities of The Company 's problems started with the MyTravel merger.

"we were told, we carry this debt from a deal That was made many years ago, and now we have the Luggage to the neck," said not identified by a former Executive, who asked.

"What That means is, we have to pay back the sale of over 2,000 holiday and a very small piece of this debt even. What we do is pay back essentially to the work, the interest," She Said .

The Year after the MyTravel deal, Mr Fontenla-Novoa received a £5m bonus in the case of Thomas Cook "Secured synergies Bonus Plan ".

Thomas Cook is the former chief executive, Manny Fontenla-Novoa, has a £5m bonus in 2008,

Paid for your annual report this has been Paid is shown in the following "an independent review of synergy benefits" carried out by EY in September 2008.

"These additional synergies, improved conditions negotiated with the provider of the accommodation and foreign agents, together with increased hotel settlement income.

"these synergies are reinforced, said as a result of a healthier negotiation position post-merger," of the annual report.

In the Year 2018, EY (which changed its name from Ernst & Young in 2013), That "The Company will be able to continue operating and meeting its liabilities as they fall due".

In may of 2019, Thomas Cook , £1 is reported. 5 billion loss for The First half of the fiscal Year issued, and the third in a series of profit warnings.

To £1. 1bn, the loss was caused by the decision, Make a note of the value of MyTravel.

then, EY warned That there is "considerable doubt" whether Thomas Cook could continue as a "going concern".

'claw-back Bonus,'

Select-chair Rachel Reeves , EY and PWC said the Thomas Cook checked prior to 2017, could hear expect tough questioning on Tuesday.

"I think we should be able to claw-back of bonuses and salary, if the members of the management Board in the event of culpable for running a company into the ground. But you should also have separation of powers and The Checks and balances are the auditor, the regulator.

"you don't have to ask All the questions to be answered about the extent to which they were, to the difficult issues The Directors will want to answer," She Said .

Mr Fontenla-Novoa declined to comment. He is due to face the select committee on 23 October.

With reporting by Luke Denne.

"file", 4 the Crash-landing: The demise of Thomas Cook is on BBC Radio 4 on Tuesday, 22. October at 20:00 BST and afterwards on the BBC Sound.

financial reporting council, thomas cook collapse, travel, companies, thomas cook group

Source of news: bbc.com