Defence bill with PWC hits $223m

The Defence Department has revealed it has 54 contracts worth more than $223m with embattled consultancy firm Pricewaterhousecoopers.

The firm, which has ordered nine senior partners on leave and is subject to an Australian Federal Police investigation, has become embroiled after a former senior tax consultant leaked confidential data obtained as part of his government contract to clients and partners.

In an open letter on Monday, the agency’s acting chief executive apologised on the company’s behalf for the leak. The nine partners ordered on leave include members of Pwc’s executive and governance boards.

Last week, Treasury referred former PWC executive Peter Collins to the AFP, with an investigation since launched into the allegations he shared confidential information about changes to tax laws with partners, clients and staff that would be affected by them.

AFP says it may widen its investigation if it suspects other partners or staff are implicated.

PWC, like other consultancy firms Deloitte, Ernst & Young and KPMG, are routinely employed by the government for contracts, but the scandal has raised questions about the future of such agreements.

The revelation on how much money Defence is spending with just PWC came as department officials came before senate estimates. Associate secretary Matt Yannopoulos said none of the nine partners stood down had done any work relating to Defence.

“We have identified all of the active contracts with PWC and attained assurance from them most recently again yesterday to the secretary from the CEO, and to myself from the Defence lead partner, that over the last 10 years of work the Pricewaterhousecoopers has done for Defence, none of the individuals named have ever done any work for Defence,” Mr Yannopoulos said.