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Grifols buries the ‘KPMG model’ and sets a maximum time limit for its future auditor

Grifols buries the ‘KPMG model’ and sets a maximum time limit for its future auditor
Grifols buries the ‘KPMG model’ and sets a maximum time limit for its future auditor

Grifols has established a maximum hiring period for its auditors after maintaining a close relationship for more than thirty years con KPMG.

The pharmaceutical multinational, which has been trying since last January to reduce the impact of the complaints made by Gotham City on its accounting, has modified, by second time this yearits board of directors regulations.

In the new version of said regulation, Grifols has included in the point devoted to the relationship with the auditor the decision to establish “a maximum contract period of the auditors (including any extensions) ensuring that this is less than the maximum legal term established at any given time in order to guarantee the independence of the auditors.”

In 2022 and 2023, KPMG has billed Grifols more than seven million euros each year for audit services

Before the end of the year in which the auditor’s appointment is due to expire, the group adds, “the Committee [de Auditoría] will analyse his possible re-election or, where appropriate, the launch of a selection procedure for the appointment of a new auditor.”

Grifols, which announced a possible takeover bid for the company on Monday, explains that criteria such as the auditor’s resources and experience, whether the auditing firm has the necessary personnel and capabilities, or the relevant technical resources will be taken into account in the selection process.

Article 40 of the Audit Law establishes that the maximum period is ten years, however, once this period has ended, the contract can be extended for an additional period, up to a maximum of 14 years; the partner signing the audit must rotate every five years, even if the auditing firm remains in office.

From this year onwards, Deloitte is expected to jointly audit Grifols’ accounts, and KPMG will then stop providing professional services to the company.

More than 83 million

According to CNMV records, Grifols’ accounts have been audited by KPMG since at least 2001. The same records also contain KPMG audit reports on the Catalan pharmaceutical company from the 1990s.

During the decades that KPMG has audited Grifols, the Big Four has not noted any exceptions in its accounts. Quite the opposite of Gotham’s reports, which claim that the Spanish company’s stock market value should be zero.

Torre Cristal, KPMG headquarters. Spain. EFE

During this century, according to Grifols’ annual financial reports, KPMG has billed the company approximately 83 million euros. In 2022 and 2023, the consultancy firm billed the Catalan company more than seven million in total for the services provided.

As this newspaper has published, Thomas Dagaa company lawyer and member of the board of directors since 2000, has had links with KPMG.

Dagá is a partner and founder of the firm Osborne Clarke in Spain and previously worked in the tax and corporate department of “de Peat Marwick Mitchell & Co. in Barcelona», the former name of KPMG. In 2007, the Borme published an announcement of the liquidation of KPMG in Barcelona in which Tomás Dagá was mentioned as a shareholder of the consultancy firm.

Grifols closed on Monday on the Stock Exchange at a price per share of 9.86 euros, after rising 9.86% due to the announcement of the analysis of a takeover bid for the group by the founding family and the fund Brookfield.

 
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