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Grenfell Tower inquiry hires KPMG despite firm earning millions from auditing council and contractors investigated over fire

Multinational consultancy company to be paid £200,000 over three months to provide 'planning and programme management support'

Harriet Agerholm
Friday 05 January 2018 16:47 GMT
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KPMG have provided auditing services to Rydon, the contractor that refurbished the tower before the blaze
KPMG have provided auditing services to Rydon, the contractor that refurbished the tower before the blaze (Reuters)

Consultancy firm KPMG has been hired by the Government to help plan the inquiry into the Grenfell Tower fire, even though the company has earned millions in auditing fees from three of the bodies being investigated.

The multinational corporation based in the Netherlands, has had a lucrative relationship with Rydon, the firm that installed the building’s cladding system.

Grenfell Tower was encased in panels made up of aluminium sheets with a polyethylene core, which melts and burns at extreme temperatures. These are believed to have contributed to the fire.

KPMG reportedly earned £3.5m for services from Rydon.

It has also provided £1m worth of auditing to Saint-Gobain Construction Products UK. The firm owns Celotex, which made the synthetic insulation which the panels were installed on top of.

KPMG has also reportedly earned nearly £1m in fees from auditing the Royal Borough of Kensington and Chelsea, which has been heavily criticised for ignoring residents’ concerns before and after the deadly fire, which killed 71 people.

The Cabinet office has nonetheless hired the firm to provide “planning and programme management support”, a spokesperson for the inquiry told The Independent.

The three-month, £200,000 contract was awarded in a fast-track process and no other bidders were considered, according to The Evening Standard, which first reported the deal.

When challenged by the newspaper, the inquiry was forced to admit that it was unaware that KPMG had been employed by Celotex.

It had known about its connection with both Rydon and RBKC.

A spokesperson for the inquiry said KPMG would provide “planning and programme management support during its starting phase”.

This was needed to get the inquiry underway “rapidly”, they said, adding that the consultancy firm would play “no role in its investigative or decision-making processes”.

Confidentiality clauses were in place to prevent conflicts of interest, they said.

However, they admitted that they had asked KPMG ”to provide further assurance about any relationships with organisations linked to the inquiry’s work”.

A KPMG spokesperson said it had “no role advising on the substance of the inquiry” and it “has policies and procedures in place to identify and manage any potential conflicts of interest.”

They added: “We are satisfied that no conflicts exist in this case, given the nature and scope of our work for each client.”

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