KPMG fine by an industry tribunal: FOI Review

Information requested

1) Any correspondence between August 2021 and to date between the Scottish Government and KPMG around the latter's £13m fine by an industry tribunal for serious misconduct in August 2021 and their later decision to voluntarily withdraw from Scottish Government bidding processes.

2) Any internal Scottish Government correspondence around the above's implications for tendered National Care Service contracts.

You requested a review on the basis that “the public interest test in relation to the section 33 exemption was incorrectly applied and should fall on the side of disclosure. This is particularly the case in regards to the date at which KPMG's review would be completed, but also in relation to Annex A of Document 1”.

Response

I have concluded that the original decision should be confirmed, with modifications. The redactions in relation to Section 33(1)(b) (Substantial Prejudice to Commercial Interests) are partially upheld, in that I consider:

a) disclosure in respect of the timeframe for completion of the KPMG review would have a detrimental impact to the supplier, providing competitors with sensitive information pertaining to their internal trade practices and
future commercial activity which is share price sensitive. I am satisfied that the public interest test was applied correctly in relation to this information, and that the public interest lies in upholding the exemption for the reasons set out.

However:

b) I consider that Annex A should have incorporated a partial redaction of contents, rather than a full redaction of the contents of this document. To release some of the contents of this document, does not significantly detrimentally impact the supplier’s commercial interests or ability to contract in future.

On that basis, the original decision to withhold the details of the timeframe for the KPMG review is upheld, however the original decision in terms of Annex A (full contents withheld), is substituted with a different decision, (contents partially withheld). Accordingly, please find enclosed a copy of Annex A partially redacted.

About FOI

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FOI 202200285303 - Information released - Annex A - Revised redaction

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