Despite multiple scandals – revelations that have prompted an investigation by the corporate watchdog and a parliamentary inquiry – the federal government continues to employ the services of KPMG.
New parliamentary data reveals the federal government currently has 297 active contracts awarded to the global consultancy firm – for a total value of $653 million.
Leaked by a whistleblower, the KPMG revelations – which include allegations of auditors misusing confidential client information to attract more work – have seen a number of senior leaders leave the company, including chief executive Andrew Yates.
However, papers from the Parliamentary Library show 31 government contracts – worth nearly $24 million and involving the Attorney-General’s Department, Defence, Finance, and BoM – were signed with KPMG after the scandals became public in March this year.
“The volume of contracts shows just how aggressive KPMG’s push into government has been,” Greens public service spokesperson Senator Barbara Pocock said. “At a time when KPMG’s dirty laundry is being aired, as scandals are being publicly exposed, Australians are rightly asking why the government continues to give them contracts worth millions.”
Also since the whistleblower’s allegations became public, a current KPMG partner has been appointed to lead government advisory body the Board of Taxation. “How does this pass any conflict of interest test?” asked Pocock.
This isn’t the first scandal involving one of the “big four” government advisory firms. In 2023, accounting giant PwC was found to be misusing confidential government information to help multinational corporations avoid tax. Pocock said the lessons of the PwC scandal have gone unheeded. “Consultants continue to play by their own rulebook as the latest misdemeanours by KPMG show.”
Consultants continue to play by their own rulebook.
It was announced last week that the Australian Securities and Investments Commission has launched a formal investigation into three auditors who dealt with the whistleblower’s complaint at KPMG, including former chief operating officer Eileen Hoggett. The investigation will examine whether KPMG’s conduct has breached the Corporations Act.
Meanwhile, current and former KPMG executives will front a parliamentary inquiry on Friday. Speaking to ABC News, Pocock said the inquiry is about “getting to the bottom of what happened to understand exactly what the unethical behaviour was and who was involved”.
A parliamentary committee held in November 2024 recommended that consulting firms such as KPMG and PwC be regulated like companies. Pocock said it is time for the government to implement the recommendations. “Subject these massive partnerships to the same rules of tax, transparency, and whistleblowing as other large entities through corporations law, separate the functions of consultancy from audit and regulate them properly.”