Consultancy firm told to release names involved in leak

ABC NEWS (Australia)

A scathing report into the big-four consultancy companies has called for greater scrutiny and regulation to ensure taxpayers are getting value from the billions being spent. The senate probe was launched after the PWC tax leaks scandal and now wants it to name and shame all the partners and staff involved.

Transcript

00:00The major shake-up is coming.

00:06The consulting sector has been operating in the shadows for way too long.

00:11The 14-month long inquiry was sparked after revelations some of PwC's senior partners

00:17misused confidential government information to help multinational clients minimise tax.

00:23How much shame do you feel for what happened?

00:25I feel terrible.

00:26What we've seen as they've hit the headwinds of being confronted by the Federal Parliament

00:33is that they've run from the ship.

00:35Among the 12 recommendations, PwC must come clean and give the names of partners and personnel

00:41who breach confidential government information.

00:44The public service must minimise the use of consultants who should act in the public interest

00:50and detail how they'll manage conflicts of interest.

00:53The amount spent by the government on consultants would be published, and a committee would

00:58review projects worth $15 million or more.

01:01And a probe into the partnership structure of the Big Four would be carried out so these

01:06firms face greater oversight.

01:09They don't pay corporations tax, they don't pay stamp duty on the partnership distributions.

01:15Australian governments have spent an estimated $10 billion with the Big Four over the past

01:21decade.

01:22Former ACCC boss Alan Fells wants to see the auditing and consulting functions of the firm

01:28split.

01:29If the auditor is also looking over their shoulder at the possibility that a tough audit

01:36will cost them lucrative consulting and tax advice business, they could be compromised.

01:44The Federal Government is likely to take its time to implement changes, and the Big Four

01:49firms are considering the recommendations.

01:52But it doesn't stop there for the industry.

01:54There's a criminal investigation into a former PwC partner, and a number of other inquiries

02:00that could result in further recommendations about the governance and structure of Big

02:05Four firms.

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Transcript

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