Senator Deborah O’Neill announced that she plans to grill other industry giants, namely EY, Deloitte, and KPMG, about their handling of conflicts of interest in government consulting work.
This comes after PwC sold its government consulting practice to Allegro Funds for a mere $1. This move has sparked concerns and questions about the potential for conflicts of interest within major consulting firms.
PwC’s $1 deal raises questions about conflicts of interest
The sale of PwC’s government consulting practice that resulted in the creation of Scyne Advisory has cast a spotlight on potential conflicts of interest within major consulting firms. Senator Deborah O’Neill believes that if conflicts cannot be adequately managed within existing structures, firms may consider separating divisions, similar to what PwC has done.
This raises concerns about the potential impact on the public sector as firms may prioritise private sector interests over the public’s best interests.
Competitors respond and pledge to maintain government consulting arms
In response to PwC’s move, EY and Deloitte, two of the industry’s biggest players, have expressed their commitment to their government consulting practices. Deloitte emphasised that government entities value the blend of knowledge and experience from working with a practice experience in both the private and public sectors.
Matt O’Donnell, Deloitte partner and lead client service partner for the federal government, stressed the importance of accessing best practices and insights from governments globally and across various industries.
EY also affirmed its intention to continue its government-related business. The firm emphasises its confidence in its systems, processes, and ability to meet the demands of its public-sector clients. The spokesperson highlighted that EY’s integrated global network provides expertise, industry insights, tools, and systems necessary for delivering impactful outcomes for the public sector.
As the industry faces greater scrutiny following PwC’s $1 allegro fund deal, Senator O’Neill plans to engage with other major consulting firms. This includes KPMG, to understand their perspectives on conflicts of interest and their commitment to the public sector. The responses from EY and Deloitte suggest that these firms are not currently considering a separation of their government consulting arms.
Additionally, PwC announced key management changes, with Kevin Burrowes set to replace acting CEO Kristin Stubbins. She will retain her position on the executive board and assume a strategy and transformation portfolio. Notably, former ASIC chief accountant Jan McCahey has been appointed as PwC’s chief risk and ethics leader. He brings a wealth of experience in accounting regulation and risk management to the firm.