PricewaterhouseCoopers investigation results released



    ICBC commits to implementing recommendations

    VANCOUVER, July 17 /CNW/ - ICBC today released the findings of the
PricewaterhouseCoopers (PwC) independent investigation into the sale of
vehicles repaired at ICBC's Burnaby-based research and training facility.
    PwC was retained by ICBC to conduct an independent, external
investigation while the corporation was conducting its own internal
investigation into concerns that some vehicles repaired at the facility were
sold with a repair history that was incorrectly documented and not disclosed
to buyers.
    "PricewaterhouseCoopers has thoroughly investigated the issues at our
research and training facility," said ICBC interim president and CEO Geri
Prior. "We are committed to implementing all the recommendations in their
report."
    The PwC report substantiated ICBC's initial findings that there was a
general lack of controls and conflicting policies and procedures regarding the
appropriate vehicle designation and around employee purchase of vehicles
repaired at the facility. PwC's investigation found instances where personal
vehicles were repaired at the R&T facility. In addition, the report found that
appropriate actions were not taken by the management responsible when concerns
were raised about the facility prior to January, 2008.
    "ICBC takes these findings very seriously," said Prior. "ICBC has been
proactive and up front about this investigation from the beginning and we are
committed to making things right for our customers."
    PwC has made a number of recommendations to ensure that ICBC's policies
and procedures are comprehensive and consistent, and updated on a regular
basis. Other recommendations include restricting the number of staff with the
authority to update salvage designations and developing and implementing
standards for conducting internal reviews including escalation requirements
and documentation standards.
    Since announcing its own investigation into the research and training
facility February 13, ICBC has taken the following actions (see backgrounder
for more detailed list):

    
    -  The research and training facility no longer repairs vehicles for
       sale.

    -  Employees and members of their immediate family are not permitted to
       purchase any ICBC salvage, either directly or indirectly through a
       friend, acquaintance, family member or other proxy.

    -  The repair of personal vehicles at the facility is not permitted under
       any circumstance.

    -  Updating policies and procedures to make sure all vehicles are
       designated properly.
    

    "Our employees are hard working, dedicated professionals who strive to do
their best for our customers every day and we are committed to working with
them as we implement these changes," added Prior.
    "I am pleased that senior executive acted quickly and decisively, first
to fully investigate this issue and then to make changes to prevent this from
happening again," said Richard Turner, ICBC board chair.
    Once ICBC completed its initial investigation, it reviewed other areas in
the company that were involved in vehicle designation and/or the sale of
vehicles.
    This further review found that, over 10 years, 91 vehicles were sold
through ICBC's Salvage operations without the proper disclosure of repair
history or registration status. Unlike vehicles from the research and training
facility, there were no employee purchases. These vehicles were repaired by
external collision repair shops and sold through ICBC's standard salvage sales
process to licensed salvage buyers.
    "ICBC regrets the inconvenience that this has caused our customers and we
apologize," said Prior.
    ICBC will be contacting customers who purchased these vehicles to have
their vehicles inspected, properly designated and, when appropriate, provide
compensation. Not all of these vehicles are currently registered.
    PwC's report and background information outlining the chronology of
ICBC's and PwC's investigations is available at www.icbc.com.





For further information:

For further information: Media contact: Doug Henderson, (604) 982-1332

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