PricewaterhouseCoopers urges ICBC to develop policies around sale of salvage vehicles

Ninety-four vehicles in the ICBC’s Material Damage, Research and Training (MDR&T) Facility over the past 10 years had incorrect salvage designations (74 had improper payment codes), hiding the true status of the vehicles from the public to maximize the sale prices of MDR&T-repaired vehicles, a PricewaterhouseCoopers LLP (PwC) investigation has concluded.
ICBC called on PwC in February 2008 to investigate practices at ICBC’s MDR&T facilities over the past decade. ICBC has posted online the results of the PwC final report, released on July 17.
PwC found a total of 55 ICBC employees or ICBC-connected parties purchased vehicles repaired at the facility; 33 vehicles had an improper designation. In addition, the MDR&T repaired and enhanced vehicles it had sold to 23 ICBC employees and connected parties.
PwC’s reports lists nine recommendations for dealing with the conflict of interest allegations that prompted its investigation. Chief among them is to design clearer policies and procedures on the sale of ICBC salvage vehicles.
“ICBC takes these findings very seriously,” ICBC interim president and CEO Geri Prior said in a press release announcing the results of the report. “We are committed to implementing all of the recommendations in the report.”
ICBC notes it no longer allows employees to buy ICBC salvage vehicles, and it has since updated its Code of Ethics to reflect this policy.
Training for all employees on the code will begin in Fall 2008.