Accountancy firm refuses to comment on Gama behaviour

INTERNATIONAL accountancy firm Pricewaterhouse Coopers (PWC) last night refused to comment on how it failed for several years to detect breaches of employment law at Gama Construction.

PWC this week resigned as Gama’s auditors citing the company’s failure to provide information on “alleged breaches of employment rights.”

Gama’s legal representative Richard Grogan has already parted company with the Turkish firm following allegations of wage fraud and underpayment.

The true extent of Gama’s labour rights abuses, amounting to many millions in underpayments, only surfaced after Dáil allegations made by Socialist Party leader Joe Higgins led to a Government investigation three months ago.

However, in the years leading to the scandal, Gama’s association with PWC was crucial in providing those who raised concerns with assurances that all was above board.

Sources in several State and private sector companies told the Irish Examiner they had queried Gama’s work practices in the last three years. However, each time the matter was pursued, Gama was able to refer to PWC audits of its practices giving the company the all clear.

Sources in the ESB (for which Gama built two power stations as a sub-contractor for Scandinavian firm Foster Wheeler) said they were reassured by the presence of a PWC audit in October 2002 when they queried rumours about Gama’s working conditions.

Likewise, it is understood that multinational giant Siemens were also reassured by the PWC stamp of approval when they looked into concerns raised about Gama during the construction of Dublin’s Huntstown power station.

Unions and the National Roads Authority also refer to the trusted PWC brand when asked how no one ever investigated Gama despite persistent rumours.

Although a spokeswoman for PWC declined to comment last night, the consultancy’s letter of resignation states that Gama failed to “furnish us with all of the information and explanations which we sought.”

Mr Higgins called on PWC to explain how such concerns had not been flagged before.

Gama declined to comment. Meanwhile, the Labour Court, which has been deliberating the dispute between Gama and its employees, is to deliver its recommendations Monday.