Ex-Torex chairman may be FSA’s iSoft witness

The continuing investigation by the Financial Services Authority into irregularities uncovered at iSoft, the NHS software supplier, may be about to take a new turn with the former chairman of Torex called as a witness.

According to a report in the Times newspaper Chris Moore, the former chairman of Torex at the time of its 2004 acquisition by iSoft, is to be called as a witness by the FSA.

After iSoft bought its healthcare software business the Torex retail arm was subsequently spun out and Mr Moore, moved to Torex Retail. The newspaper reports that the City watchdog is working with the Serious Fraud Office, which is conducting a separate inquiry into Torex Retail.

The FSA began its inquiry into iSoft in July last year after it uncovered accounting irregularities.

ISoft reported a £495.5m goodwill charge in its 2006 annual report, 80% of which related to its acquisition of Torex. iSoft took a £351.4 million charge to reduce the goodwill on its balance sheet.

The Times report says Moore is not a suspect in the FSA’s iSoft investigation, but is one of five suspects in the SFO’s inquiry into Torex Retail. Torex Retail suspended its shares in late January after admitting revenue from some contracts to supply software had been delayed.