-Caveat Lector- >From http://www.guardian.co.uk/business/story/0,3604,747170,00.html
}}}>Begin KPMG conflicts of interest revealed Jeevan Vasagar and Rob Evans Monday July 1, 2002 The Guardian The giant financial consultancy KPMG, whose polo-playing boss is paid £1.7m a year, has had at least five potential conflicts of interest in its dealings with the British taxpayer, a Guardian investigation has found. KPMG is one of the so-called big four who dominate the accountancy world, and is the latest auditor to be at the centre of controversy over scandals in the US. It audited Xerox, which on Friday admitted overstating its revenues during the past five years by almost $2bn. We have found: · KPMG was paid to advise Hertfordshire University on a contract to build student halls which was awarded to one of its construction company clients. · KPMG advised the highways agency on a major road project awarded to another of its clients. · KPMG took £128,000 from the government for an "unacceptable" investigation into the tax haven of Belize. It was doing extensive business with the offshore operators itself. · KPMG was paid by the Foreign Office to investigate a series of other offshore tax havens in the Caribbean, where KPMG had its own lucrative offshore operations. · KPMG has been allowed to place secondees in sensitive departments in the inland revenue, the Department of Trade and Industry and the serious fraud office, while specialising in advising firms and individuals how to avoid British tax. In return for £500 KPMG last month told our reporter in London how to set up an offshore trust. While the consultancy operates in more tax-avoidance offshore centres than other firms, KPMG has been paying British politicians and political parties with a generous hand. Both Toby Harris, leader of the London assembly's Labour group, and Steve Bassam, before he became a Home Office minister, have been on the KPMG payroll. The firm also - uniquely - loaned a KPMG man, Rees Aronson, to serve as the Labour party's finance director in the year running up to the last general election. It sponsored and had a KPMG partner on the "independent" commission set up by the Labour IPPR thinktank to promote private finance initiative deals, which are lucrative for KPMG. The firm also helps the Tories, providing several Conservative frontbenchers with free research. "These big accountancy firms can't simultaneously serve two masters," said Prem Sikka, professor of accounting at Essex University yesterday. "The question must be asked: are they taking the taxpayer for a ride?" Prof Sikka, a strong of what he calls the "anti-social practices" of the big four, calls for wholesale reform in his book Dirty Business, to be published today. He says as much as £85bn in tax may be lost to Britain because of avoidance promoted by the big four. Last year KPMG took in more than £7bn in fees from 152 offices spread across the globe. While Mike Rake, who heads KPMG in Britain and its international organisation, was paid £1.7m, the firm's 690 partners in Britain took an average of £413,000 in profits. KPMG's head of corporate affairs, Gavin Houlgate, last night said the firm did not believe any conflicts of interest had taken place: "These events were all on the record. They are open and well-known." He said KPMG had operated in a tightly regulated environment, did not favour any one political party, and behaved no differently from the other big accountancy firms. Guardian Unlimited © Guardian Newspapers Limited 2002 End<{{{ ~~~~~~~~~~~~~~~ Forwarded as information only; no automatic endorsement + + + + + + + + + + + + + + + + + + + + + + + + + + + + In accordance with Title 17 U.S.C. section 107, this material is distributed without charge or profit to those who have expressed a prior interest in receiving this type of information for non-profit research and educational purposes only. + + + + + + + + + + + + + + + + + + + + + + + + + + + + + "Do not believe in anything simply because you have heard it. Do not believe simply because it has been handed down for many generations. Do not believe in anything simply because it is spoken and rumored by many. Do not believe in anything simply because it is written in Holy Scriptures. Do not believe in anything merely on the authority of Teachers, elders or wise men. Believe only after careful observation and analysis, when you find that it agrees with reason and is conducive to the good and benefit of one and all. Then accept it and live up to it." The Buddha on Belief, from the Kalama Sutta + + + + + + + + + + + + + + + + + + + + + + + + + + + + "Always do sober what you said you'd do drunk. That will teach you to keep your mouth shut." --- Ernest Hemingway <A HREF="http://www.ctrl.org/">www.ctrl.org</A> DECLARATION & DISCLAIMER ========== CTRL is a discussion & informational exchange list. Proselytizing propagandic screeds are unwelcomed. Substance—not soap-boxing—please! These are sordid matters and 'conspiracy theory'—with its many half-truths, mis- directions and outright frauds—is used politically by different groups with major and minor effects spread throughout the spectrum of time and thought. That being said, CTRLgives no endorsement to the validity of posts, and always suggests to readers; be wary of what you read. CTRL gives no credence to Holocaust denial and nazi's need not apply. Let us please be civil and as always, Caveat Lector. ======================================================================== Archives Available at: http://peach.ease.lsoft.com/archives/ctrl.html <A HREF="http://peach.ease.lsoft.com/archives/ctrl.html">Archives of [EMAIL PROTECTED]</A> http:[EMAIL PROTECTED]/ <A HREF="http:[EMAIL PROTECTED]/">ctrl</A> ======================================================================== To subscribe to Conspiracy Theory Research List[CTRL] send email: SUBSCRIBE CTRL [to:] [EMAIL PROTECTED] To UNsubscribe to Conspiracy Theory Research List[CTRL] send email: SIGNOFF CTRL [to:] [EMAIL PROTECTED] Om