Auditors of an energy company backed by Business Expansion Scheme (BES) investors’ funds say that it was not possible for them to independently confirm that all of its transactions were properly recorded.
Pronanotect, which was founded by businessman Declan Conway and trades as Openoils, recently avoided being struck off by filing overdue accounts for 2010.
After it was founded in 2009, it raised between €500,000 and €1 million from BES investors, although the Revenue Commissioners had yet to approve it for the tax reliefs available under the scheme.
In their report on the 2010 financial statements, only recently filed, auditors, Dublin firm, Whelan Dowling Associates, say that the accounts indicate that there was an uncertainty as to whether Pronanotect could continue as a going concern.
The auditors also state that the company’s control systems depended heavily on the directors’ involvement, and while they gave assurances about the completeness of the accounts, it was not possible for them to independently confirm that all transactions were properly recorded. The company intends processing waste plastics to produce clean oil, using technology developed by Polish firm Tovark and Hungarian manufacturer Pinter Muvek, its partners in the project.
