Defence is under pressure to reassess its utilization of PwC personnel following a scandal involving the consultancy firm. Concerns have been raised about their involvement in ongoing technology projects. The Department of Defence is PwC’s largest client within the Australian government, but despite the scandal, it has not yet reviewed the credibility of the staff working on its contracts.
During a Senate Estimates session, the Department of Defence disclosed that it currently holds contracts with PwC worth over $223 million. However, Greens senator David Shoebridge criticized Defence for not conducting integrity checks on PwC staff since the tax consultation scandal involving the firm came to light.
Defence’s CFO, Steven Groves, stated that the department received assurances from PwC last week and on Monday that none of the individuals involved in the scandal had worked on Defence contracts. Nevertheless, Shoebridge’s further inquiries revealed that Defence has not independently verified this claim.
Senator Shoebridge specifically highlighted PwC’s involvement in technology contracts, such as the project management for the Defence SECRET network and a personnel contract for cyber security staff. The value of the Defence SECRET network contract, with contract notice CN3794965, has increased from $6.4 million to $19.2 million. Defence Secretary Greg Moriarty explained that the increase was due to the project’s extension, which was approved.
When asked about integrity checks on the 54 PwC staff members working on the SECRET network project, Moriarty mentioned that the department is currently pursuing additional actions beyond what has already been done. He also stated that the department is following the lead of the Department of Finance, which has a prominent role in this matter.
CTO Justin Keefe clarified that PwC’s engagement is primarily in a project management capacity rather than a technology-specific role. The PwC staff involved would only have access to project management information, while the technical aspects of the project are handled by other firms.
Shoebridge also inquired about a $3.6 million contract between the Cyber Warfare Division and PwC, with contract notice CN3909348. General John Frewen, Chief of Joint Capabilities, explained that this contract primarily involves a workforce arrangement, with seven to eight PwC staff members embedded in Defence. Once again, Defence confirmed that no integrity checks have been conducted since the PwC scandal surfaced, as they are operating under the guidance of the government and the Department of Finance.
