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No pressure from Tatas: Ferguson

BS Markets Bureau in Mumbai

Auditing firm A F Ferguson & Co on Thursday said that only one of its employees working on the Tata Finance special audit had resigned, but added that the resignation had nothing to do with the current imbroglio.

In a media release, A F Ferguson said "Out of the core teams, deployed on the Tata Finance special assignment, only one employee has resigned and that too with prior notice in February 2002. His resignation has nothing to do with the recent events."

The remaining members of the core team continue with the company, Ferguson said, reacting to reports earlier in the day that four members of the team had resigned.

Ferguson denied that it had been coerced by the Tatas into asking for its partner, Y M Kale's, resignation.

"His cessation from the partnership was the result of a decision that was unanimously taken by the partners of the firm consequent to a detailed internal inquiry," Ferguson said.

Detailing the sequence of events, Ferguson said the Tata Finance chairman (Ishaat Hussain) met the managing partner (Ashok Mahindra) of the firm on July 9, 2002 and again on July 10, 2002.

"At these meetings, the former informed the managing partner that there many inaccuracies in the Ferguson special report of April 24, 2002. He also stated that they had lost confidence in Y M Kale, the partner in charge of this special assignment."

"As a result of the seriousness of these remarks, the managing partner of the firm conducted an internal inquiry on Kale through a series of meetings with the senior partners and former partners of the firm, including particularly those under whom Kale had worked extensively. In the course of these meetings a number of issues relating to Kale's past conduct emerged," the release stated.

"At these meetings, Kale was also given the opportunity to present his views. On July 20, an emergency meeting of 14 senior and former partners was held and various matters were deliberated upon and Kale also presented his views," the release stated.

On August 5 and 6, emergency meeting were again held for further detailed deliberation on these issues. Kale also again presented his views to a committee of senior partners.

"It was the unanimous opinion of all the partners present that they had lost faith in Kale and that therefore he should cease to be a partner in the firm. Accordingly, Kale has now ceased to be a partner in the firm with effect from August 7," Ferguson said.

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