Spain May Sanction Deloitte for Failure to Probe Bankia Assets

Spain started proceedings to sanction Deloitte SL and partner Francisco Celma Sanchez over their role as auditors of Bankia SA before it was nationalized last year.

The Spanish Accounting and Audit Institute, a unit of the Economy Ministry, said Deloitte may have breached rules that could have compromised its independence as an auditor, according to a June 13 report obtained by Bloomberg. Sanctions may include a fine or, in the worst case, stripping Deloitte and Celma of their licenses to work as auditors in Spain, the report showed.