The UK's Financial Reporting Council has launched an investigation into KPMG's audits of State Oil Limited, part of the collapsed Prax Group, covering accounts from 2021 to 2024. The probe also targets an unnamed individual accountant and the 2024 audit performed by PKF Littlejohn, which replaced KPMG that year. Prax Group, including its Lindsey oil refinery in north-east England, entered insolvency in 2025, threatening over 400 jobs and drawing government criticism of its wealthy owner.

Privately held Prax was founded in 1999 by chief executive and chair Sanjeev Kumar Soosaipillai and his wife Arani Soosaipillai, expanding into refineries in the UK and South Africa, petrol stations and a trading business. Separately, administrators are suing Sanjeev Kumar Soosaipillai, alleging he directed employees to fabricate £334mn of invoices to secure borrowing from Wall Street lenders. He denies knowledge of the fictitious invoices until mid-2025 and says he acted in good faith.

KPMG and PKF Littlejohn both pledged full cooperation with the FRC.