Top four consulting firms pocket $3.7 billion from armed forces
Australia’s biggest consultancy firms were awarded contracts worth $3.7 billion from the Australian Defence Force during the past decade, analysis shows.
Australia's armed forces paid out more than $3.7 billion to the big four consulting firms over the past decade, it has been revealed. (Photo: AAP Image/Danny Casey)
The Greens on Tuesday released an analysis of data from the AusTender website showing the amount the big four firms – PwC, KPMG, EY and Deloitte – have raked in since 2011.
It found KPMG mainly benefited from the spending by the ADF on consultants, taking in contracts worth more than $440 million in 2022.
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 KPMG billed the Defence department for hours never worked.
KPMG reportedly charged the department $1.8 billion over the past decade.
The firm told the ABC in a statement it could not find evidence to support claims of improper billing of Defence.
PwC has been embroiled in a scandal over its use of confidential government information to help clients avoid tax.
