The professional standards of former Cardigan accountant Dai Davies have been described as ‘falling seriously below the standard expected’ of a member of the Institute of Chartered Accountants.

The damming statement was made following a formal complaint against DMB Davies.

As a result of their allegations, a tribunal into Mr Davies’ professional conduct was carried out by the ICAEW disciplinary committee, (the Institute of Chartered Accountants of England and Wales) which found each of the factual allegations proven.

In June, 2020, David Michael Barry Davies – Dai Penlan - received an anonymous letter of complaint signed by ’20 unhappy non-Newport resident boat owners with moorings in Newport’.

Further investigations revealed that on or before March 9, 2020, a financial statement prepared by Mr Davies for the company for the year ending December 31, 2019, failed to comply with the Financial Reporting Standard 102.

The fixed assets brought forward at December 2018 amounted to £116,882 however the 2018 financial statements revealed fixed assets of just £21,205.

Similarly the balance sheet showed general reserves brought forward of £136,706 despite the 2018 financial statements having reserves carried forward of £21,205.

“It is obvious…that there were major discrepancies with regard to the value of fixed assets,” confirmed an ICAEW statement following the tribunal.

“In the 2019 accounts, the figure brought forward from the previous year was more than five times higher than the figure of 2018. This required a detailed explanation…but there was none.

“There was even a larger discrepancy with regard to the value of reserves.”

The tribunal was heard in Mr Davies’ absence and he was unrepresented.

In written communication to the ICAEW Mr Davies, who retired from his practice in March 2022, claimed the allegations were ‘minor’.

In an email dated September 3, 2021, he wrote “Rules are for the obedience of fools and for the guidance of wise men’.

But this, according to the tribunal panel, showed Mr Davies ‘failed to understand the seriousness of the allegations’ and’ continually minimised the concerns’.

After proving each allegation, Mr Davies was fined £3,000 and ordered to pay a contribution to ICAEW’s costs of £7,535. This amounts to a total of £10,535.

Newport Boat Club would like to stress that whilst some of the anonymous complainants may have professed to be members of Newport Boat Club 'they had no authority to speak on behalf of the Management Committee of the Boat Club'.

A spokesperson added: "Davies was not our accountant, we had no association with him and he certainly didn’t prepare any financial statements for our company. The accounts cited were those of Newport Moorings Association, who are a completely separate entity from Newport Boat Club."