Exclusive: Disgraced consultancy KPMG hired to run government ethics training

Exclusive: Disgraced consultancy to run government ethics training

Despite a series of scandals involving lying and overcharging, KPMG has been awarded a contract by the peak agency representing the Australian Public Service to conduct a course on the ethics of leadership for 300 top public servants.

The decision to hire KPMG, a firm with a tarnished reputation in recent years, has raised eyebrows and sparked criticism from Australian Greens Senator Barbara Pocock. Pocock expressed shock at the choice of KPMG to teach ethics of leadership, given their track record of controversies both in Australia and internationally.

The $1.3 million contract awarded to KPMG has been viewed as a strategic move by the consultancy to not only conduct the leadership course but also potentially recruit talent from the public service. Pocock raised concerns about the potential conflict of interest and the motives behind the contract.

The upcoming final report by the Senate Finance and Public Administration References Committee is expected to shed light on the consulting services provided to the Australian government, following the PwC tax scandal. The report is likely to recommend new measures to regulate the consulting industry and address the outsourcing trend that has been prevalent in the Australian Public Service.

The audit of employment in the public service revealed a significant reliance on external contractors and consultants, costing taxpayers billions of dollars. The report by the Centre for Public Integrity highlighted the substantial growth in contracts awarded to the Big Four consulting firms over the past decade.

In response to the challenges posed by consulting firms, the Albanese government launched an in-house consulting unit to reduce outsourcing costs and enhance the skills within the public service. The move is seen as a step towards reducing the government’s dependence on external consultants.

As the Senate prepares to table its final report on consulting services, the focus is on rebuilding the public service, addressing conflicts of interest, and implementing reforms to ensure transparency and accountability in government contracts. The report is expected to propose measures to prevent future scandals and restore public trust in the Australian Public Service.

The ongoing scrutiny of consulting firms like KPMG and PwC underscores the need for comprehensive reforms and stricter regulations to prevent unethical practices and conflicts of interest in government contracts. The upcoming report is poised to be a turning point in reshaping the relationship between the public service and consulting firms, with a focus on integrity, accountability, and value for money.