Baker Tilly has resigned as auditor of Safeland, citing an 'unmanageable conflict of interest' with the management of the property development company.

The departure of the mid-tier firm comes less than two weeks after it was revealed that Safeland had been the victim of a number of fraudulent transactions totalling close to £1.25m.

The events uncovered on the 11 October and the termination of the relationship with Baker Tilly as the company's auditor appear to not be unconnected as according to a statement issued by Safeland, Baker Tilly said: 'The reason for the cessation of audit appointment was that following the identification by the directors of an alleged defalcation, an unmanageable conflict of interest has arisen, which has led to our resignation.'

In the statement issued to the London Stock Exchange, Larry Lipman, managing director said that Baker Tilly had explained that 'there are no circumstances connected with their resignation which they consider should be brought to the attention of members or the creditors of the company'.

Lipman, son of the company's South African founder, Raymond Lipman, went on to add that the search for a replacement auditor had already begun.