KPMG denies conflict in NHS work
Big Four firm KPMG has denied any abuse of procedure in its work as government adviser for the sale of 120 former NHS hospitals and asylums.
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The response came after MPs demanded that health secretary Alan Milburn stop the £400m sale, which they claimed would see taxpayers miss out of £100m in future profits.
According to the Observer MPs took issue with the firm for acting both as government adviser and for undertaking audit work for two of the winning bidders, Miller Group and HBOS.
MPs believe second-placed bidder, WS Atkins together with William Pears, would have given taxpayers a better deal.
In addition, MPs also complained that a member of KPMG evaluation committee worked for underbidder WS Atkins.
KPMG’s work for the NHS was undertaken befor it split its audit and consulting practices.
The matter is being investigated by the National Audit Office.