BDO Auditors Face Lawsuit Over Bluthorn Audits

• Liquidator urges creditors of BFM to institute proceedings against BDO
• Says problems of locus standi may prevent him from acting against BDO himself

Auditing firm BDO faces a lawsuit for its alleged negligence in its audits of liquidated Bluthorn Fund Managers (BFM), now liquidated, that collapsed in a suspected P250 million fraud. 

In a report before the High Court, BFM liquidator Kopanang Thekiso proposes that “the creditors institute a delictual action against BDO Botswana for professional gross negligence for failing to ensure that the audited financial statements for BFM were presented to the standard required in terms of the Companies Act, Financial Reporting Act and the International Financial Reporting Standard”.