Poltics
An arm of disgraced consultancy PwC presents “recommendation to authorities” on “Indigenous matters” — and has been given bigger than $44 million in federal authorities contracts.
The entity, “PwC’s Indigenous Consulting”, presents “recommendation to authorities” on “Indigenous matters” and “goals to be an emblem for Indigenous self-possibility”, its web characteristic says.
It has been extremely — and an increasing number of — a success in attracting federal authorities contracts, official filings level to.
PwC’s Indigenous Consulting has been awarded $44.58 million in federal authorities contracts since 2015.
In 2022 on my own it changed into once given federal contracts of $13.78 million, nearly double any assorted year.
Fueling its success has been bigger than $14 million in “little soft” contracts — including bigger than $10 million awarded below a procurement regime for runt Indigenous firms.
Investigations level to PwC’s Indigenous Consulting has been given dozens of the “little soft” contracts, totalling $10.03 million, on the grounds it is some distance an “SME with now not lower than 50% Indigenous possession”.
The federal authorities’s procurement register AusTender shows it changed into once given nine “little soft” contracts good in 2022.
Two of those contracts, totalling $1.125 million, were from the Division of Treasury, with the reason acknowledged simply as “management advisory products and companies”.
Every filings negate: “Diminutive Soft Exemption … SME (runt to medium challenge) with now not lower than 50% Indigenous possession”.
The revelations arrive as High Minister Anthony Albanese this week launched October 14 as the date for the referendum on creating an Indigenous Converse to Parliament, which would present a everlasting platform for Indigenous peoples to present recommendation to the authorities on Indigenous factors.
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Furthermore among the “little soft” deals given to PwC’s Indigenous Consulting changed into once a contract awarded by the Division of Social Products and companies in February closing year for “protection and program construction products and companies”.
It changed into once for exactly “$200,000.00”.
One more Social Products and companies contract changed into once “amended” nine times — at any time when its imprint changed into once increased.
Starting at $1.22 million in March 2019, it changed into once come what could increased to $4.34 million in June 2021.
Every “amendment” — which requires a brand fresh contract — is marked “Diminutive Soft … SME with now not lower than 50% Indigenous possession”.
PwC is thought to be one of many realm’s greatest firms.
When The Klaxon approached PwC Australia, spokesman Patrick Lane said PwC’s Indigenous Consulting “is now not segment of PwC Australia”.
“It is its comprise entity,” he said.
That’s no topic its title, that its directors embody PwC Australia companions, that it shares a web characteristic with PwC — and that it’s based totally inner PwC’s areas of work.
Filings with corporate regulator the Australian Securities and Investments Commission (ASIC) order its full just title is “PriceWaterhouseCoopers Indigenous Consulting Pty Diminutive” and that it’s 51% owned by a deepest company referred to as MAAR Funding Holdings.
The closing 49% is owned by PwC.
The entity’s address, and its “major characteristic of substitute”, is Degree 17, 100 Barangaroo Avenue, Barangaroo, NSW — PwC Australia’s headquarters.
It changed into once created in August 2013, rapidly after Luke Sayers changed into once appointed PwC Australia CEO.
Sayers changed into once PwC Australia’s CEO from mid-2012 to mid-2020 — the full tax leaks affair.
PwC has been caught taking secret authorities info it gleaned while providing “recommendation” on fresh authorized pointers to prevent multinationals from avoiding Australian tax — and promoting it for millions of bucks to multinationals looking for to set aside some distance from Australian tax.
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It is now not doubtless to decide how powerful money PwC has comprised of PwC’s Indigenous Consulting — PwC is refusing to present us with a copy of its audited accounts.
Nonetheless it owns 49% of all earnings made by PwC’s Indigenous Consulting, including from the $44.58 million in earnings from federal authorities contracts on my own since 2015.
Detailed evaluation of the larger than 100 AusTender filings for PwC’s Indigenous Consulting since 2015 shows they’re extremely same to those for PwC Australia, which has been given lots of of millions of bucks a year in federal contracts.
The entries are littered with hefty “amendments” — which with regards to ceaselessly heavily amplify the within the begin agreed imprint to taxpayers — and they quilt a certainly huge differ of “products and companies” supplied.
One “little soft exemption” contract is with the Australian Taxation Place of business (ATO) for “cloud instrument products and companies”.
It changed into once in the beginning to imprint taxpayers $244,751.49 – nonetheless it ended up costing $378,586.49 after an upwards “amendment” of $133,835.39.
The web characteristic for PwC’s Indigenous Consulting — at pwc.com.au — states the entity goals to “allow definite trade” by providing “recommendation” on “Indigenous matters”.
“Our procedure is to wait on allow definite trade by providing depended on expert products and companies and recommendation to authorities, corporate and neighborhood customers on Indigenous matters,” it states.
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PwC Australia’s Lane directed The Klaxon to PWC’s Indigenous Consulting’s CEO Gavin Brown.
“PwC Indigenous Consulting (PIC) is a separate organisation to PwC Australia — we’re a Offer Nation Certified substitute (i.e. bigger than 50% possession by Indigenous peoples),” wrote Brown.
“Now we gain prioritised our folk and applications sooner than earnings, which has enabled us to develop from a begin-up of good over a handful of folk in October 2013, to a substitute which is now roughly 75 folk, bigger than 50% of whom are themselves indigenous peoples”.
We requested how powerful earnings the entity had made, and the draw in which powerful went to PwC.
Brown spoke back: “Now we gain by no components declared or paid a dividend.”
Whether or now not or now not dividends gain been paid — that is, whether earnings gain been drawn down — has no relation to what earnings gain been earned by the corporate.
Reasonably, the earnings simply stay within the corporate until they’re drawn down.
PwC Indigenous Consulting is now not required to file audited annual accounts with ASIC as it is some distance thought to be a “runt proprietary company” on myth of it has annual earnings of lower than $100 million.
Meaning it’s now not doubtless to decide key records similar to how powerful it paid in govt salaries, what its “related score together” dealings are — and the draw in which powerful earnings it has accumulated.
We requested Brown for a copy of the 2022 audited accounts of PwC’s Indigenous Consulting.
Delight in PwC Australia, Brown refused.
Brown said PwC’s Indigenous Consulting changed into once “a runt Indigenous substitute”. He said it changed into once “now not required to resort monetary statements with ASIC” given it had revenues below $100 million a year.
We said we were attentive to this.
We requested the accounts “for the reason of transparency”, given PwC’s Indigenous Consulting had purchased hundreds of hundreds of bucks of taxpayer funds (including $13.78m good in 2022).
Brown refused.
This text first seemed at The Klaxon and is republished with permission.