The latest KPMG scandals show the Big 4 consultancy firms are making a mockery of the parliament, yet again.
Following multiple scandals, KPMG’s CEO has resigned and the COO has stepped down but the rot won’t go away.
KPMG has reluctantly admitted to a string of allegations, including misusing confidential client information to get more audit work, auditors using AI to cheat on internal exams, breaching audit independence, and “falling short” on the whistleblower’s concerns raised.
Despite these revelations, however, the Government continues to employ KPMG’s services.The Department of Finance, alone, currently holds eight consultancy contracts worth $27 million with KPMG.
The Greens say the Government needs to stop feigning outrage and expressing “deep concern” at corrupt practices of the Big 4 while dishing out millions of dollars to them in contracts. Labor needs to put an end to their special treatment and regulate them like other Australians businesses.
As stated by Greens Senator Barbara Pocock, spokesperson for finance and public sector:
“Australia’s Big 4 consulting firms are marauding pirates making a mockery of the parliament. They play by their own rules and get away with it, again and again.
“After years of multiple internal inquiries and subsequent cover-ups, KPMG’s recent misdemeanours are being dragged into public view, thanks to a courageous whistleblower.
“Even while the PwC scandal was unfolding, KPMG who were engaged in their own corrupt behaviours and cover-ups, failed to notify the parliament despite giving evidence to multiple parliamentary inquiries. Such dishonesty beggars belief.
“How many scandals does it take for this government to take action?
“The Big 4 have lost their social licence. Australians have had enough of the repeated scandals. It’s time for the Big 4 to be regulated under Australia’s corporate regulatory regime.
“It’s time to rip the bandaid off. It’s time the government made these opaque, largely unregulated mega-partnerships accountable under the same corporate law, regulatory, whistleblower and tax regime as other large businesses in Australia.
“Meanwhile, the big consulting firms are donating hundreds of thousands to politicians. How does this pass any conflict of interest test?
“Labor needs to put an end to the Big 4 donations to political parties and governments with whom they hold multi-million dollar contracts.
“It is time to end the special treatment and poor regulation of the Big 4 which has allowed them to get away with corruption and remain at the profitable trough of government consulting.”
