Consultancy firms use Defence as source of ‘almost unlimited growth’
Australia’s biggest consultancy firms were awarded contracts worth $3.7 billion from the Australian Defence Force during the past decade, a report shows.
On Tuesday, the Greens released an analysis of data from the AusTender website showing the amount the big four firms – Deloitte, EY, KPMG and PwC – have raked in since 2011.
Australia’s biggest consultancy firms were awarded contracts worth $3.7 billion from Defence Force during the past decade. Les Hewitt
It found KPMG mainly benefited from the spending by the ADF on consultants, taking in contracts worth more than $440 million last year.
Greens Defence spokesman David Shoebridge said the consultancy firms had targeted the department as a source of “almost unlimited growth”.
“What is really remarkable is how the big four consultants’ feasting on defence contracts has surged in the last six years, almost doubling year-on-year,” he said.
“With almost daily scandals now breaking where consultants have breached secrecy requirements when it suits them, there is a major national security risk with this.”
Senator Shoebridge said Defence had “no credible answers” to how it was managing risks, apart from asking for more self-reporting from consultants.
It follows allegations aired on ABC investigations program Four Corners that KPMG submitted inflated invoices and billed Defence for hours that were never worked.
KPMG and Defence deny the claims, which come at a time when the Albanese government is already looking to cut its bill on consultants and other professional service providers.
KPMG reportedly charged the department $1.8 billion over the past decade.
“There clearly has to be investigations… by regulators and also by the department,” corporations committee chair Deborah
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