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Audit giant Ernst & Young pulls secondee out of crisis-hit CBI business

Ernst & Young

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The big four accounting firm Ernst &Young has terminated the secondment of one of its workers to the CBI (Confederation of British Industry) as the corporate lobbying group deals with an escalating crisis over allegations of sexual misconduct.

Sky News has learned that EY has decided not to extend a staff member's secondment as an adviser to the CBI's president, Brian McBride.

The move demonstrates how large corporate members of the CBI are attempting to distance themselves from the organisation while an independent examination of its culture is conducted.

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In a statement issued to Sky News on Thursday, an EY spokeswoman said: "The most recent EY secondment with the CBI ended in March 2023 and will not be renewed at this time. It would be inappropriate to comment further."

The auditing giant had said earlier this week that the allegations about the CBI were "extremely concerning, however, we will not be commenting further until the official investigations have been completed and the CBI has responded to the findings".

An initial investigation into allegations made regarding Tony Danker, the CBI director-general, is scheduled to be completed in the coming days, with the conclusions due to be announced next week.

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The law firm Fox Williams is conducting additional investigations into charges revealed by The Guardian newspaper, which are expected to take longer to complete.

Mr. Danker has stood down as the investigation into his behaviour continues, with Matthew Fell, the CBI's chief policy director, acting as an interim replacement.

According to reports, KPMG has one executive on secondment to the business group.

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Information from a CBI insider states that the individual in question works as Mr. Danker's assistant and is now on parental leave, with no decision on whether they would return to the CBI.

Deloitte and PricewaterhouseCoopers (PwC) are said to have no employees on secondment to the CBI.

A Deloitte spokeswoman said: "We are aware of the allegations and are awaiting the conclusions of the independent investigation led by an external law firm."

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The government suspended their engagement with the CBI while these investigations are ongoing, saying this week: "Given the serious allegations made and the ongoing investigation, the government is pausing engagement by ministers and senior officials with the CBI.

"Routine, technical engagement may still take place on a case-by-case basis, for example, if the CBI chooses to respond to open government consultations."

Sky News reported on Thursday, 6 April, that the business and commerce secretary, Kemi Badenoch, has postponed a meeting with the UK's five biggest business organisations, the Institute of Directors, British Chambers of Commerce, Federation of Small Businesses, and Make UK, due to the CBI crisis.

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According to sources, the meeting was scheduled to take place shortly after parliament returned from its Easter break.

The postponement of the meeting may fuel fears that the crisis afflicting Britain's largest employers' organisation may have a larger impact on the business community's involvement with the government at a key juncture in the economy.

The CBI announced this week that it had chosen to cancel all external events until an inquiry into allegations of sexual misconduct and drug use, as revealed by The Guardian newspaper, was ongoing.

It declined to comment on the departure of any personnel on secondment to it.

SourceSky News

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