Senate may compel BCG, McKinsey to talk on conflicts of interest
Boston Consulting Group and McKinsey look set to be compelled to face a Senate inquiry into conflicts of interest and poor behaviour by private sector consultants, as Labor and the Greens call the firms’ bluff on giving evidence to parliament.
The inquiry, triggered by the PwC tax leaks scandal exposed by The Australian Financial Review, wants to question local executives from the global strategy firms on their lucrative government consulting work. So far, they have refused to make time to answer the committee’s questions.
Greens Senator Barbara Pocock says Boston Consulting Group and McKinsey need to respect parliamentary processes. Alex Ellinghausen
Labor’s Deborah O’Neill and the Greens’ Barbara Pocock said on Thursday that the two firms, which raked in more than $120 million in fees from federal government work in the past two years, were not above parliamentary scrutiny.
“The Senate has significant and extensive powers, and with that comes great responsibility, including regarding our own committee confidentiality,” Senator O’Neill said in a statement.
“It is my hope that all witnesses relevant to the Senate’s inquiry will appear voluntarily. In the event that they do not, I will support whatever action is necessary in order ensure that we collect relevant evidence, in our service of the Australian people.”
Senator Pocock added: “I can assure concerned voters that I will be insisting on full and frank co-operation from all the consulting groups on our list as the inquiry proceeds.”
Individuals and private businesses are not obligated to appear before parliamentary inquiries, unless a vote of MPs takes place to compel them to do so. The pressure campaign could force a rethink, after Boston Consulting Group
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