iSOFT 'irregularities' to be investigated

The Financial Services Authority has confirmed that it is to launch an investigation into iSOFT, a key supplier for the NHS’s £12.4bn National Programme for IT (NPfIT).

The Financial Services Authority has confirmed that it is to launch an investigation into iSOFT, a key supplier for the NHS’s £12.4bn National Programme for IT (NPfIT).

The troubled software firm’s Lorenzo electronic patient record system was selected as the key care record service component in three out of the five NPfIT geographical clusters.

Confirmation of the FSA probe comes as the iSOFT nears Friday’s deadline for posting its twice-delayed financial results. Failure to meet the deadline could see iSOFT’s shares suspended by the stock exchange.

The company has already been forced to change its accounting rules after irregularities were found in its 2004 and 2005 accounts, and the company has faced a series of profit warnings amid delays to the NPfIT scheme.

In a statement, iSOFT said, “The findings of the initial investigation were passed by the group to the FSA. The group has now received notification from the FSA that they will be undertaking a formal investigation into the possible accounting irregularities.”

The FSA would not comment on the nature of the investigation, but its powers to act cover breaches of company listing rules, or of Section 397 of the Financial Services and Markets Act, which makes it a criminal offence to knowingly make false or misleading statements, dishonestly conceal material facts or recklessly make a misleading or false statement or forecast.

 

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