Connections between GD SANTE, PWC and PMI Continued

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Two weeks ago I published an initial report on the fact that DG SANTE has hired PWC and Everis to conduct both a feasibility and implementation study of potential track and trace solutions to be implemented across the EU.

My article highlighted the fact that PWC has deep and open ties with the tobacco industry: mainly that they are the auditors of PMI and have done other work for other tobacco giants in the past.

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PMI’s website citing PWC as their auditors.

After discovering and publishing this information I inquired via the DG SANTE press office on the matter, to no reply.

Only after reaching out to several MEP’s and even the EU Ombudsman’s office did DG SANTE provide a long response from spokesperson Enrico Brivio which is featured below:

The Commission’s executive agency, Chafea, concluded a contract with the consortium of PwC and Everis for carrying out the implementation analysis regarding the technical specifications and other key elements for a future EU system for traceability and security features in the field of tobacco products. To avoid any kind of doubt, the ultimate responsibility for shaping an EU system remains in the hands of the European Commission, which for this purpose will prepare necessary implementing and delegated acts as envisaged in Articles 15 and 16 of the TPD

The Commission has taken multiple steps to ensure that a new contract for conducting the Implementation Study, which is intended to support the Commission in preparing the implementing and delegated acts as envisaged under Articles 15 and 16 of the Tobacco Products Directive 2014/40/EU , is free of the conflict of interest, in particular with the tobacco industry.

 Both consortium members, PwC and Everis, provided the necessary declarations in this regard. Furthermore, the project team’s members: (a) exclude at the present stage the employees of PwC, (b) are subject to personal declarations of the absence of conflict of interest and (c) where required are protected with Chinese walls within their structures.

The work of the project team, including potential conflict of interests, is continuously monitored by the Commission’s services. The key outcomes of the project will be also scrutinised externally, including discussions with stakeholders (including health NGOs), the Subgroup on Traceability composed of national experts and a panel of independent experts.

I remind you also that DG SANTE in particular has been praised in the recent past by the Ombudsman for the transparency of its procedures.

I inquired further, asking for elaboration on what type of “monitoring” will be taking place as well as what declerations PWC and Everis provided. As of the publication of this article I have received no further elaboration.

My concern is not intentional misconduct of the part of DG SANTE, I just want to insure there is no tobacco industry meddling in such an important consultation.

Further elaboration is needed.

My ultimate fear is the tobacco industry could influence PWCs recommendations in a way that suggest since Codentify has been sold to Inexto that it is now somehow independent.

I will be investigating the sale of Codentify further and already have some interesting leads which I hope to share in the coming weeks.

 

 

Connections between DG SANTE, PWC and PMI.

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On June 22nd the EU Commission Tobacco working-group’s  Subcommittee on Tracibility and Security Features convened a meeting in which DG SANTE informed the committee that they have subcontracted consulting work to two firms to conduct both a feasibility and implementation study of potential track and trace solutions to be implemented across the EU. The question is: are these third party firms truly independent of tobacco industry influence.

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Screenshot from DC SANTE document citing PWC and Everis as consultants on tractability solutions.

The Tobacco industry has produced and promoted a system called Codentify which they have begun implementing across Europe in an attempt to create an unavoidable reality in which their system must be chosen by default. In actuality this system may not even track or trace products and as the health conscious community raised concerns about the systems capabilities the tobacco industry sold the system off to a, so called, “Third Party” company named Inexto in an attempt to distance the product from themselves. This story I proudly broke to the EU observer some months ago.

The World Health Organization’s (WHO) Framework Convention on Tobacco Control (FCTC) has explicitly stated that Codentify does not meet their standard for a solid track and trace solution for the industry.

The two company’s assigned the consulting task by DG SANTE  are PWC and Everis. The hiring of such firms came as some surprise to those watching this committee closely and when the firms names where announced it was important to explore if these firms have an intrinsic interest in supporting a tobacco industry produced solution.

After just an initial search it is clear that PWC has strong ties to the tobacco industry which put their objectivity in inherent question. PWC are the primary auditors for Philip Moris International (PMI) and have in the past done auditing work for British American Tobacco (BAT) as well.

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Proof from PMI’s website of an existing relationship with PWC.

Although this is just preliminary information I will continue to delve deeper into this issue and publish as more information comes to light.

 

Initially  DG SANTE refused to respond to requests for clarity on these matters but in recent days have responded. I will be including their full response in a follow up article.