Australian ban on new KPMG contracts still leaves room for $38.5M to flow to consulting firm
Por Miriam Webber — POLITICO – TOP Stories
CANBERRA — The federal government awarded KPMG AUD$38.5 million, even as the company is blocked from new federal government contracts after whistleblower allegations raised questions about its ethical soundness.
KPMG has overhauled its Australian leadership, exited partners and announced nearly 390 job cuts as it grapples with the ongoing fallout from claims it misused confidential client information to win work.
The Department of Finance in June told agencies to stop awarding work to the firm for callouts that closed between June 16 and Sept. 30 — later extended until Oct. 31 — as former senior public servant Ian Watt investigates the firm’s governance, culture, ethics and integrity frameworks.
KPMG agreed to comply and has not bid for new work, but the terms of the freeze have still allowed six departments to send tens of millions of dollars to the firm — including through contracts that were finalized before it came into effect and amendments to existing arrangements.
The Department of Defence awarded the bulk of the work — valued at $29.8 million — according to Tendertrace data analyzed by POLITICO and cross-referenced with AusTender.
The work comprises $24.2 million in amendments and $5.6 million in new contracts finalized ahead of the ban, but which didn’t kick in until after June 16.
Finance itself has committed $7.5 million for a contract amendment executed days before the pause on June 12, which kicked in on July 1.
A spokesperson for the finance department said the contracts were allowed and that it was not aware of any breaches.
“The pause does not stop existing contracts or extension options from continuing,” the spokesperson said.
“The Commonwealth Procurement Rules require entities to consider a supplier’s ethical performance, alongside relevant experience and performance history, when assessing value for money.”
KPMG declined to comment. In a June statement, the firm said it acknowledged “that individuals in our firm have made mistakes.”
“But those failings do not reflect the overwhelming majority of our partners and people.”
The value of work still being awarded points to the federal government’s reliance on KPMG and the challenge this poses as Finance considers its procurement policy beyond October.
Parliamentary library analysis, commissioned by the Australian Greens, found the firm held $437 million worth of active contracts with the federal government on Sept. 9, 2026.
A similar scandal rocked the Australian branch of PricewaterhouseCoopers in 2023, prompting Finance to bar the firm from bidding for new work for more than a year.
PwC sold off its government advisory business ahead of the ban, with the spinoff allowed to bid for work during that time.
Fonte: POLITICO – TOP Stories
