Latest consultant claims: Did KPMG charge for work never done?
The chair of an inquiry into consultants says allegations KPMG reportedly fleeced taxpayers by billing the Defence department for hours never worked must be investigated.
The ABC is reporting two whistleblowers, one from KPMG and another from Defence, have revealed the lack of scrutiny which led to the consulting giant being able to inflate invoices and charge the federal government for work not done.
KPMG reportedly charged the department $1.8 billion over the past decade.
Another of the big four firms, PwC, has been embroiled in a scandal over its use of confidential government information to help clients avoid tax.
āThere clearly has to be investigations ā¦ by regulators and also by the department,ā corporations committee chair Deborah OāNeill told ABC radio on Monday.
āWhen you are rewarded time and time again for pushing the envelope for a grossly profit-driven incentive at the cost of any integrity and professionalism, youāve got the recipe for whatās been described.ā
Senator OāNeill said the coalition government hollowed out the public service over the past 10 years.
āWhen you replace all of those who are actually able to talk frankly and fearlessly to government ā¦ youāve got a big problem in the sector,ā she said.
Nationals leader David Littleproud said there were existing mechanisms, such as the auditor-general, to investigate the claims.
āThatās important that the Australian people get confidence that Australian taxpayersā dollars has been spent wisely,ā he told reporters in Canberra.
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āIf thereās evidence that points towards that, then that should be aired.ā
A whistleblower who previ usly worked for the department told the ABC personal connections helped KPMG snag a $14 million contract for a defence logistics project, despite it being the most expensive option.
The firm said in a statement to the ABC it could not find evidence to support claims of improper billing of Defence.
It said there was a formal process of extensive checks and balances involving both parties before invoices were issued or paid.
KPMG has been contacted for comment.
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