Italian arms of auditing firms under investigation

The Italian businesses of Grant Thornton and Deloitte & Touche have been formally placed under investigation for their role in the Parmalat collapse, according to reports from Italian news agency Ansa.

Grant Thornton was Parmalat's primary auditor between 1990 and 1999, but the US company continued to be the auditor of Parmalat's Cayman Island based Bonlat.

Deloitte & Touche SpA audited a number of Parmalat Finanziaria units as well as the holding company itself.

Italian dairy giant Parmalat's troubles began when it was revealed in mid-December that there was an $8bn (€6.5bn) hole in the company's accounts, and when founder, Calisto Tanzi, admitted to misappropriating €500m from Parmalat's funds to finance other parts of the business run by his family.