The Victorian government has spent more than $670 million on consultants over the past five years, including almost $80m on a firm embroiled in a tax scandal.
The Victorian Auditor-General’s Office released the new figures as a federal Senate committee investigates the integrity of major consultancy firms after the leaking of confidential tax information shared with PwC.
KPMG, PwC, Ernst & Young, Deloitte and Boston Consulting Group ($362m) account for more than half of the $671m total spend from mid-2017 to mid-2022.
About $79.6m was paid to PwC over the five years, including $17.8m in the 2021/22 financial year.
Former PwC partner Peter Collins has been referred to federal police to investigate allegations he shared of confidential government briefings on multinational tax reform with partners and clients.
Premier Daniel Andrews has repeatedly said the secretary of the Department of Premier and Cabinet sought assurances from PwC and was confident it hadn’t leaked confidential information from his government.
Victorian Greens MP Ellen Sandell said it was disturbing the state government refused to pause contracts with PwC, despite the federal finance department effectively banning the firm from winning new work.
“Given the recent tax leaks, Victorians should expect the government to act, not just rely on assurances from PwC, who clearly can’t be trusted right now,” she said in a statement.
“There are fundamental conflicts of interest here but the Labor government keeps burying their heads in the sand, and giving millions of taxpayer dollars to consultants to profit a wealthy few.”
Victoria’s now-split Department of Health and Human Services ($146m), Department of Treasury and Finance ($135m), Department of Transport ($117m) and former Department of Jobs, Precincts and Regions ($108m) spent almost all of the consultancy funds.
Spending on consultants by the nine Victorian government departments rose from $109.9m in 2017/18 to $167.5m in 2021/22.
Before last year’s Victorian state election, the Andrews government promised to save $50 million a year by cutting consulting and labour hire costs.
The state government has been contacted for comment.
– AAP
