Results of ICBC Investigation Released - Collision Repair Magazine

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Results of ICBC Investigation Released

Written by CRM News

Thursday, 17 July 2008

VANCOUVER, BC -- July 17, 2008 -- 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:

- 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.

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