Concerns over potential conflict of interest over Bristol Arena location

Green councillors have raised concerns about KPMG’s involvement in determining the future of the Bristol Arena, amid what they deem to be a potential conflict of interest.

The accountancy firm has been commissioned by mayor Marvin Rees to carry out a ‘value for money’ survey to determine the location of the multi-million project, yet has recently worked for YTL, owners of Brabazon hangar, which is earmarked as one of the potential sites.

The Greens are challenging the mayor on the relationship and will raise the matter at a full council meeting on Monday, asking if he was aware of the possible conflict of interest.

Brabazon Hangar is widely rumoured to be a potential location for the arena.

“It doesn’t look fantastic in terms of openness that the consultants the mayor is using to advise him on the arena location, also happen to be the auditors for YTL,” said Jerome Thomas, Green councillor for Clifton.

“YTL own the land a Filton arena would be built on and I’m not sure a company that stand to indirectly benefit from an alternative site are best qualified to provide impartial advice on where it should be located.”

The 12,000-capacity arena has long been expected to be built as part of the Temple Quarter regeneration and a bridge has already been built leading to arena island, with a new footbridge currently being constructed.

But Rees put the brakes on further developments at the site in November 2017 when he expanded the scope of possible locations and commissioned a ‘value for money’ assessment.

The site near Temple Meads has long been earmarked as the site for the arena

Thomas noted that the chief executive of YTL UK Group, Colin Skellet, is also the former head of the West of England Local Enterprise Partnership and speculated about whether the arena was on the agenda when the mayor met representatives from YTL during his trip to China.

In another link, YTL UK chief operating officer Barra Mac Ruairí was Bristol City Council’s strategic director for place between March 2014 and May 2017.

Thomas added: “Overall, there’s a feeling of decisions taking place behind closed doors and I’m sure I’m not alone in thinking there needs to be a lot more transparency here.

“Whatever decision is made in the end, the process must be clear and open to everyone to comment – this is a massive project which will have a huge impact on the future growth and layout of the city.

“This is an arena for everyone in Bristol and a decision that affects us all, and it is essential that the public can see how that decision is being made.”

Responding to the concerns, a source close to the mayor said: “The Greens were reminded at Tuesday’s cabinet meeting that it’s the job of the cross-party scrutiny committee to set the scrutiny agenda, not the mayor.

“Value for money studies are underway. There will be a further public update when the papers are published next week, ahead of a cabinet meeting on January 23, as part of an open and transparent process which will see Labour deliver the arena which Bristol needs and can afford.”

The Grenfell Tower enquiry recently cancelled its contract with KPMG after it came to light that the auditing firm was also employed by the companies which produced the insulation on the building, the contractor that refurbished it and the Royal Borough of Kensington and Chelsea.

A KPMG spokesperson said: “KPMG has been auditor to YTL Group in the UK, which includes Wessex Water, in recent years. The last financial statements subject to audit by KPMG were those for the year ended 30 June 2017.

“As disclosed in the last financial statements, in accordance with best practice, the company has tendered the audit and as a result of that tender process, we are now in the process of resigning as auditor.

“Separately, we were appointed by Bristol City Council in September 2017 to carry out a value for money review of the arena plans in Bristol.

“Large professional service firms work for many organisations in the public and private sector, whose interests may, on occasion, compete or conflict.

“KPMG has policies and procedures in place to identify and manage any potential conflicts of interest when taking on new work and in the delivery of that work.  We are satisfied that no conflicts exist in this case, given the nature, scope and timing of the work.”

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