If international auditing firm KPMG had any concerns about the vast flows of sponsorship money going out of the bank accounts of one of its client, the Trinidad and Tobago Football Federation (TTFF), to an agent company created and controlled by the client’s special adviser Jack Warner, it is not at all apparent in the unqualified statement covering three years of audited accounts the firm signed off on in 2008.
Evidence unearthed by this newspaper revealed that the national football federation, its agent company—LOC Germany 2006—and special adviser Warner, the man who set up the rogue company, were allowed to operate in a zone of impunity by both its conflicted accountant, Kenny Rampersad, and its auditor, KPMG. LOC Germany, Warner himself and private companies in which National Security Minister Warner had an interest were allowed without challenge, sanction or a note to any of the accounts, to funnel tens of millions of dollars out of TTFF’s bank accounts. In the three-year period under review—2005 to 2007—LOC Germany diverted over $32 million in grants and sponsorship money paid into two TTFF accounts held with Republic Bank to itself. JAW Ltd, a private Warner company, redirected more than $13 million in public and private sector money held at the Republic Bank West Mall and Long Circular branches to itself.
Financial records, TTFF bank statements and other documents in the possession of this newspaper show about $3 million in grant money paid to the national football federation in support of the 2006 World Cup campaign being moved to Jamad Ltd, another private Warner entity. The documents show some $9 million was re-routed from the two Republic Bank accounts to Warner himself.
Sponsorship funds were also redirected to other Warner associated companies, including the Dr Joao Havelange Centre of Excellence, Catch of D Day, Sportel Ltd and CONCACAF (the body which represents football federations from North and Central America and the Caribbean) and of which Warner was president. Another $322,000, representing six transactions over several months in 2007, was moved from another TTFF account held with First Citizens Bank at the corner of Park and Henry Streets to Jamad Ltd.
The documents show several instances where millions of dollars were deposited into TTFF’s bank accounts and just as quickly transferred to LOC Germany or Warner-related accounts. On May 2, 2006, $14.4 million was debited from the Republic West Mall account in favour of LOC Germany. The deposit for the same amount was made 16 days later by the Ministry of Sport and Youth Affairs.
There was another similar money-out money-in transaction on May 8. LOC Germany cleared out a little over $2.6 million the same day the exact sum was paid in by a corporate sponsor.
Voucher-payable documents show a $6.7 million payment being made to Warner in July 2007. The football association’s top officials Oliver Camps and Richard Groden were signatories to the paperwork. The government had paid in just over $10.1 million via the Ministry of Sport and Youth Affairs the week before. There were also occasions when the bank transfers placed the TTFF accounts in overdraft. Rampersad has not responded to a request for comment on several important aspects of the TTFF financials drawn up by him including whether Warner had an input in the making of the accounts but all the evidence place him in a very conflicted position. In the first of four sets of accounts produced by him and addressed to Warner as president of CONCACAF, Rampersad noted: “In accordance with your request we have completed the accompanying statement of income and expenditure relative to TT’s participation” in the 2006 World Cup. In the 2006 accounts, Rampersad, who was also the auditor of CONCACAF, declared a total sponsorship income of $13 million. As reported in Part I of this series, official state records place the total sponsorship and grant figure at a minimum of $205.6 million. Sources report that an unknown amount of funds paid into TTFF’s coffers in support of the 2006 World Cup effort were redirected elsewhere. The federation’s auditor, KPMG, responding to a list of questions from the Express, made clear that LOC Germany was created to “see about all aspects of our football team’s preparation and participation in the 2006 World Cup” and as far as they were concerned it was a “separate legal entity” and did not form part of its audit remit. Managing Partner of KPMG Rob
ert Alleyne explained it this way: “You would appreciate that LOC and TTFF being separate legal entities and our audit engagement related to TTFF alone, consequently, we had no basis to request or to examine the accounting records of LOC.” Asked whether KPMG investigated the circumstances in which TTFF ended up indebted to its special adviser Warner, KPMG said: “We stand by our audit report which did not express any reservations about the debt.” Questioned about a $716,339 debt to LOC Germany in 2006 Alleyne said: “There is no requirement to disclose the purpose of debt.” Alleyne made clear that the questions submitted by this reporter “crossed the line” and that the international auditing firm had “an overriding contractual obligation” to its client “to keep information obtained by us in our capacity as their auditor, confidential.” He said further that KPMG’s policies “prevent us from commenting on the nature of or outcome of the audit.” (Trinidad Express)
