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The Federal Government has raised eyebrows by potentially resuming contracts with consultancy giant PwC Australia, despite the company’s much-publicized divestment of its government business last year. The Department of Finance has signed a mutual agreement with PwC, allowing the consultancy to bid for new Commonwealth work as early as December 2024. This surprising development comes in the wake of a tax leaks scandal that led to PwC selling its government business to Allegro Funds.
The procurement policy note issued by Finance indicates that an examination of PwC’s ethical soundness is ongoing, with an update expected on December 1. This move has sparked controversy, especially as PwC has engaged a lobbying firm run by former senior ALP staffers. The Senate inquiry into consultancies has also issued a damning report, highlighting ongoing issues at PwC and criticizing the company for failing to address the scandal adequately.
Despite these concerns, Finance has stated that contracts with PwC’s Indigenous Consulting arm will not be affected by the ban on new engagements. The Indigenous arm, which is partially owned by PwC Australia, has been deemed appropriate for continued engagement by the Commonwealth.
This latest development raises questions about the government’s commitment to ethical procurement practices and the oversight of consultancy contracts. As the situation continues to unfold, many are calling for greater transparency and accountability in government dealings with companies like PwC.
