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Why is PriceWaterHouseCoopers interested in the VI? – Hon Fraser

-Legislator cautions against use of company that has a reputation of buying its way out of lawsuits
Representative of the Third District Hon Julian Fraser RA said that Government should be cautious in dealing with accounting giant PriceWaterHouseCoopers, saying that the company can do or get anything it wants and buy its way out because of its size. Photo: VINO/File
“So the question still is – why is PWC interested in the BVI,” asked Hon Fraser. Photo: Internet source
“So the question still is – why is PWC interested in the BVI,” asked Hon Fraser. Photo: Internet source
ROAD TOWN, Tortola, VI – Representative of the Third District Hon Julian Fraser RA said that Government should be cautious in dealing with accounting giant PriceWaterHouseCoopers, saying that the company can do or get anything it wants and buy its way out because of its size.

Speaking today August 11, 2014 at the continuation of the Eighth Sitting of the Third Session of the Second House of Assembly during the debate of the Public Accounts Committee (PAC) final report on the cruise pier project Hon Fraser said that PriceWaterHouseCoopers has a bad reputation in its handling of financial matters for corporations.

“The question is why are they interested in the Virgin Islands? It can’t be the fee. This is international money moving…big money,” he said.

“PriceWaterHouseCoopers (PWC)? Not a walk in the park…they are as big as you could get. And they are going to stay that way,” he said.

The Opposition has been consistent over many months in their criticism of their engagement of PWC.

Hon Fraser went on in the House to read some news snippets about PWC around the world where various companies sued PWC over accounting issues. He said that one company MF Global Holdings alleging accounting malpractice sued PWC for $ billion. The alleged actions of PWC helped bring down the brokerage company, said Hon Fraser.

He said that PWC which provided auditing and accounting experts failed to advise the firm to account properly for its European sovereign debt holding, leading it to invest too much.

“This is the company that we used to get what we got, including a $35 million loan from First Caribbean Bank. When you see who PWC really are, even you would hire them to get a loan for your house, because you don’t have to pay it back,” said Hon Fraser.

“Why is PWH interested in the BVI? PWC is the largest of the big four auditing firms, having earned just over $26 billion in revenues for the fiscal year 2009. For 2013 that figure was $32.9 billion in earnings. In real perspective, if you were to look at the size of PWC, [with their earnings] PWC can finance our Government for 103 years with one year’s earnings. So it begs the question, Madam Speaker, why a company of this magnitude is so interested in the Virgin Islands,” he asked.

Hon Fraser pointed out that PWC claimed a ‘success fee’ of $262,500 for getting a $35 million loan. “To the ordinary man in the street that’s a lot of money, but to PWC that can’t even supply toilet tissues in one of their offices for a month,” he said.

“So the question still is – why are they interested in the BVI,” he said. “For the little work that they are here doing, why are they doing this work for us? Who is it that recruited this company? The questions are there. If you don’t want me to ask them that doesn’t mean that they do not exist. I have to ask them because I have a duty to represent them,” he said.

He noted that following accounting scandals involving PWC, the company was careful not to be providing consultancy services and accounting services to the same entity because of concerns over conflict of interest.

Noting that the company settled in the amount of over $200 million with a company that was planning litigation, Hon Fraser said, “That’s what happens…when you’re so big you can roll over anybody, because you can buy your way out. This is what they do.”

“These are hired guns, whatever you want they can give you without fear of reprisal because they can buy their way out,” he said.

He said that PWC has been also accused of helping to hide significant financial failures through an offshore tax scheme.

“Should we as a Government be in bed with PWC that is the question,” he said. “Is it poor judgment on our part to be using this company or is it willfulness? This company can get you anything you want,” he stressed.

“I mean which bank is going to turn us down when we’ve got PWC,” he stated. “My question is judgment on our part to be involved with this company,” said Hon Fraser.

21 Responses to “Why is PriceWaterHouseCoopers interested in the VI? – Hon Fraser”

  • apple pie (11/08/2014, 17:01) Like (2) Dislike (1) Reply
    Tis thing to talk
  • Online Now (11/08/2014, 17:10) Like (13) Dislike (4) Reply
    Is he really calling into question the integrity of one of the "Big 4" Accounting Firms? For PWC, this engagement would be just that, an engagement, no big deal. They have been approached and appointed by a government to do a job, or a series of jobs.
    • shaw (11/08/2014, 22:40) Like (12) Dislike (3) Reply
      I would question PWC too. Just because they are big doesn't mean they don't take advantage of situations. They are as big as a government and there is equally as much waste and lack of sound practice at times.
      This kind of scrutiny should have been given Hugh Darley and Disney affiliates whose project in Jamaica isn't going as planned. Or Disney itself and how they take over territories for their self-interest. We need to do more vetting of companies before throwing good money after bad.
      • Schups (14/08/2014, 00:29) Like (1) Dislike (0) Reply
        Shaw, pete, pat all of them are NDP toads. Every single negative story they'e stirring the pot. Where are these bloggers when there are positive stories? Schups. Now that they can't prove the Government did nothing wrong, they're now accusing PWC, CIBC and others. Soon you will see them writing to the Queen to investigate the Governor because he's not interested in their stupid games. Shaw, drive out to the pier tomorrow and see the project. THE PIER IS BEING BUILT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
  • bb (11/08/2014, 18:29) Like (5) Dislike (6) Reply
    Good points oh next permier
  • water (11/08/2014, 19:33) Like (11) Dislike (8) Reply
    This is beyond ridiculous. PWC does NOT need the BVI. Only ignorant people will believe this guy. Biwater was full of lawsuits itself all over the world, for not upholding their contracts, YET the honorable member had no problem giving them our birthright.
  • David (11/08/2014, 19:46) Like (8) Dislike (3) Reply
    Both VIP and NDP have used PriceWaterhouseCoopers. Both VIP and NDP need to go. It is time for big change.
  • Online Now (11/08/2014, 20:43) Like (2) Dislike (9) Reply
    Fraser is the man as usual always on point
  • Virgin Son (11/08/2014, 20:55) Like (7) Dislike (1) Reply
    At the end of the day it will be what the Premier, NDP and the cabinet wants.
  • Native Boy (11/08/2014, 21:02) Like (13) Dislike (4) Reply
    did you hear Ronnie and Dr. Smith???? These pple are truly delusional....
  • Reality check (11/08/2014, 21:08) Like (3) Dislike (8) Reply
    We the people wholeheartedly support Mr. Frazer in his quest to lead the BVI anyone could do a better job than the NDP bunch!
  • Boo (11/08/2014, 21:16) Like (6) Dislike (0) Reply
    Simple answer. A fool and his money are soon separated.
  • tu tu (11/08/2014, 22:46) Like (9) Dislike (1) Reply
    Some body eating big out of pwhc
  • Concerned Citizen # 1 (12/08/2014, 03:35) Like (11) Dislike (1) Reply
    I still want to hear from Mr. Fraser why he thinks PWC wants to be dealing with the BVI. I don't get it. The BVI has an A1 rating for paying it's bills, so we did not need PWC to fix or cover up anything for us. However, what I noticed about NDP, is that they think they could do the things that they are doing and then cover them up like PWC and they figure that the BVI electorate would not find out. I think that the BVI electorate has become a little more sophisticated than that and will fix this situation by next election, seeing that the governor has not done his job by addressing the situation. I have to give kudos to Representative Christopher on the pier project: I think his presentation was very clear.
  • Really? (12/08/2014, 04:08) Like (10) Dislike (8) Reply
    He talking about PWC. Lol.. Anyone remembers BiWater? Or is he exempted once again?
  • VG (12/08/2014, 10:03) Like (5) Dislike (3) Reply
    I wonder why wait until next election. By the time these people are through with us , we will be so deep in $h.t that whomever else we put in there wouldn't be able get us out of this massive hole they are digging for us. For real now. Is the NDP going to seek reelection next year?
  • in the news (12/08/2014, 10:04) Like (5) Dislike (1) Reply
    hope when he becomes Premier he does not do business with PWHC as deeds people say one thing and do another
  • ?? (12/08/2014, 12:05) Like (7) Dislike (1) Reply
    Why was Biwater interested in the BVI?
  • Go on (12/08/2014, 14:39) Like (3) Dislike (0) Reply
    Please! Reason PWC is interested in the BVI is simple to see. They make money helping investigate government. Then they make money helping defend government against charges from investigation. They are good with playing for offence and defence; all money is good when the check clears! BVI is a major market possibility to they. We the low-hanging fruit.


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