PwC’s Involvement in the Robo-Debt Scandal Raises Concerns
PwC, one of the world’s largest professional services firms, has recently been under scrutiny for its involvement in the robo-debt scandal. The scandal involved the Australian government’s automated debt recovery system, which was found to be unlawful and caused distress to many citizens. PwC was hired by the government to investigate the scheme, but questions have been raised about the firm’s handling of the investigation.
PwC’s Shane West was questioned at the robo-debt inquiry in February about why a 70-page report on the scheme was never delivered to the government, despite PwC being paid nearly $1 million for the investigation. The Department of Social Services was also unable to provide any record of communication or summary of PwC’s findings from the 27 meetings that took place over three months between the agency and PwC.
While PwC did deliver an eight-page PowerPoint presentation to Services Australia in May 2017, labelled “cabinet-in-confidence”, it has not been made clear why the full report was not delivered to the government. This has led to concerns about PwC’s loyalty and transparency in its dealings with government clients.
The Hazards of Relying on Consultants for Critical Advice
The robo-debt scandal has highlighted the hazards of relying on consultants to give critical advice to government. Greens senator Barbara Pocock has criticised the use of consultants, stating that “the public service should be doing this work, not consultants who are driven by profit and may not have the same level of accountability as public servants.”
Assistant Treasury Minister Andrew Leigh has responded to these concerns by announcing a $10 million Treasury evaluation unit to assess government programs. This unit will provide independent and objective advice to government agencies, reducing the need for consultants like PwC.
Conclusion
PwC’s involvement in the robo-debt scandal has raised concerns about the firm’s loyalty and transparency in its dealings with government clients. The lack of communication and transparency in PwC’s investigation has highlighted the hazards of relying on consultants for critical advice. The establishment of a Treasury evaluation unit will provide independent and objective advice to government agencies, reducing the need for consultants like PwC. It is important for government agencies to carefully consider the use of consultants and ensure that they are held accountable for their actions.
Source: afr.com
