Many of you will be aware that on September 9th, People For Economic Justice dispatched a letter to Ireland’s National Lottery, highlighting to them our concerns in regards to their use of KPMG as their independent auditors. Today we received a less than illuminating response from them. You can find the responses below, along with a scanning of each of the actual letters involved. If you haven’t read our original letter to the National Lottery, we suggest you do so before continuing.
The National Lottery’s First Response:19th September Mr. Ben Gilroy
People For Economic Justice,
Dear Mr Gilroy,
Thank you for your recent correspondence in relation to the National Lottery’s independent auditors, KPMG.
The company KPMG were appointed as independent auditors for the National Lottery through a public procurement process. In accordance with public procurement guidelines the invitation to tender for this contract were advertised on etenders.gov.ie. It was open to interested auditing companies in the European Union. KPMG was selected as the most economically advantageous tender of those received. The National Lottery has entered into a contract with KPMG for its services. Our relationships with all of our suppliers are governed by contractual terms. KPMG has consistently met all of their contractual obligations to the National Lottery.
I understand from your letter that you are dissatisfied in your dealings with KPMG and would suggest that you contact KPMG directly to convey your concerns.
Head of Finance
It doesn’t take much to notice a few problems with the above response. Firstly (we are by no means disappointed that someone of authority in The National Lottery dealt with the letter) the letter was not address to Declan Harrington, but to Dermot Griffin, the Chief Executive Officer of The National Lottery. Secondly, and perhaps more importantly, the response above does not address a single concern raised in our original letter. Our response below will hopefully correct these issues, and more.
Our First Reply To The National LotteryMr Declan Harrington Cc: Mr Dermot Griffin
Abbey Street Lower,
Dublin 1 20th September 2012
Thank you for your prompt reply. I must say that it was quite a cold corporate response to what was a true human tragic concern of one of the causes of suicide. I was a bit disappointed that Mr Griffin, to whom the letter was addressed, couldn’t take time to reply to the concerns raised by the many people around the country.
Declan, as head of finance, I’m not really sure why the grave concerns of a growing number of discontented people around the country should fall in your remit. While I don’t want to seem ungrateful for a reply I wasn’t asking anything about your finances.
Your letter describes the way on tenders for the position that KPMG now hold. My letter merely complained of who they are and the practices they conduct around the country. The letter states that you have a contract with KPMG and they meet their contractual obligations. The inference is taken that once they do what they are paid to do, it is of no concern to your company what they do or how they act to your customers the length and breadth of the country. I am reminded of the legal maxim “He who contracts, knows, or ought to know, the quality of the person with whom he contracts, otherwise he is not excusable”.
Perhaps in the future your company will choose more wisely, when contract with companies like KPMG, and won’t only consider the most “economically advantageous” company, because in the long run, they may turn out to be the most costly, for all of us.
Update From The National Lottery?
As of Friday 26th of May 2017 The National Lottery have yet to respond. We will post the update as a new article if and when it arrives.