KPMG accused of inflating Defence invoices, billing for hours never worked

afr.com:

KPMG submitted inflated invoices and billed Defence for hours that were never worked, according to new allegations aired on ABC investigations program Four Corners.

The allegations, outlined in an episode of the program released online at 5pm on Sunday, accuse Defence of failing to manage its relationship with KPMG and accuses the firm of repeatedly over-billing and incorrectly billing the department.

Allegations have been made against KPMG over its dealings with the Department of Defence. Getty

The claims, which KPMG and Defence both deny, come at a difficult time for the firm and the wider advisory sector, with the Albanese government already looking to cut its bill on consultants and other professional service providers.

The new allegations also come after the new National Anti-Corruption Commissioner said he expected consultants to the Commonwealth to “attract considerable interest from the commission” as it ramps up its operations.

The comments by NACC commissioner Paul Brereton, made during a previously unreported speech made last month, also included his view that consultants were “easily” captured within the jurisdiction of the new anti-corruption body.

Paul Brereton is the first head of the National Anti-Corruption Commission. Edwina Pickles

He also made reference to “ongoing revelations concerning the conduct of firms retained as consultants to government” as forming his thinking as the commission filters through the541 complaints it has so far received. Only 12.8 per cent of the referrals related to “well-publicised” matters, such as the PwC tax scandal and revelations from the robo-debt royal commission.

“In the light of the extent to which government has in recent years retained external consultants, and the