Man City Set For Fresh Investigation as British MP Points Out Concern

· GiveMeSport

A Labour MP has confirmed that Manchester City are being examined due to their breaches of financial regulations.

Manchester City are set for another investigation following a formal request made by an MP regarding their case over breaching Premier League financial regulations.

An independent commission found City guilty of most 115 charges relating to 'sham' commercial contracts which allowed them to inflate their revenue by more than £900 million. The club have appealed the verdicts and are expected to discover the outcome of this in the New Year.

In the meantime, other controversies have ensued off the back of the ongoing case and the findings made by the commission. Labour MP Liam Byrne has confirmed that the Financial Reporting Council (FRC) are looking into the club's audit.

Byrne, the MP for Birmingham, Hodge Hill and Solihull North, had written a letter about City to the chair of the FRC asking for the initial findings in the case to be investigated. His concerns surround the audit system and how it failed to discover the club's breaches.

In the letter, he wrote: "The findings raise a fundamental question: how could the established system of audit and regulatory scrutiny fail to uncover alleged misstatements of such a scale over nine years?"

Byrne added: "We are particularly concerned that these issues came to light through media reporting rather than the established audit and accounting process."

The FRC have since replied to Byrne and in their response they state on the UK Parliament website : "The FRC is currently examining the published findings of the independent Disciplinary Commission insofar as they may relate, or be relevant, to the financial statements issued by MCFC and the statutory audits undertaken by MCFC’s external auditors, BDO LLP."

Byrne explained that the regulator's letter "exposes gaps in its ability to compel evidence from the club and pursue directors who fall outside its disciplinary rules."

He continued: "This raises serious questions about the powers available to hold companies and directors to account. The Government has a responsibility to explain why reforms to close these gaps were abandoned - and what will now be done to strengthen."

The examination could lead to a formal investigation and the FRC state in their letter to Byrne that they have taken responsibility for the case. They also claim that both the auditors and some club officials could face scrutiny, including BDO's audit work and possible misconduct by City directors or employees.

The club's appeal doesn't stop the enquiries, but the FRC will be taking it into account. Should they find any wrongdoings, this could result in accounting enforcement alongside the 115 charges case.

The commission's findings are leading to other examinations involving City and Manchester City Council are also conducting an ongoing internal review of an agreement with the club's owners. The council have had a deal in place with the club's owners, Abu Dhabi United Group (ADUG) since 2014, and it's described as a 'controversial property deal.'

The council are unsure whether the £3 million they received for building almost 1,800 homes under the agreement fully represents the value it should because ADUG booked its profits offshore. This agreement came under previous Labour leadership and the new leaders want assurances and wouldn't have made such agreements today.

Manchester City's likely punishment if they lose their appeal has now been revealed

City have maintained their innocence throughout their 115 charges case, but their guilty verdicts have opened up a can of worms in one of football's biggest ever scandals. It's been reported this week that if their appeal fails, the club are likely to be hit with a points deduction that sends them to the EFL Championship along with a huge fine.

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