Media Release
The Big 4 consultancies have taken more than $3.7 billion from Defence since 2011.
There has been an extraordinary ramp up in the money they have taken from Defence in the past 6 years. In each of the last 6 years Defence has paid more to the Big 4 consultancies than all other government Agencies combined.
KPMG has been the main beneficiary of this surge in spending by Defence on consultants. In the last year alone (2022) KPMG gained over $440 million in Defence contracts.
The amount paid to KPMG in 2022 was more than 5 times the entire annual military expenditure for Fiji.
Australian Greens Senator and Defence Spokesperson said:
"The Big 4 consultancies have clearly targeted Defence as the source of almost unlimited growth.
"What is really remarkable is how the big four consultant's feasting on Defence contracts has surged in the last 6 years, almost doubling year on year.
"KPMG has been the biggest winner with Defence, grabbing over $440 million in Defence contracts in 2022 alone.
"A quick look at history shows what an explosion there has been in Defence's spend on consultants, in 2012 KPMG took "only" $49 million from Defence.
"With almost daily scandals now breaking where consultants have breached secrecy requirements when it suits them there is a major national security risk with this.
"When pressed in budget estimates, Defence had no credible answers to how they were proactively responding to the risks, apart from asking for more self-reporting from the consultants themselves.
"With billions of dollars in contracts comes hundreds, if not thousands, of staff embedded throughout Defence from Cyber Warfare to data management and strategic assessments.
"This is not just an obscene waste of public money, it is also a major unchecked security risk," Senator Shoebridge said.
Background:
Department of Defence's contracts versus contracts for ALL-Other-Departments since 2011; dollar value as a percent of row total, with trend line.
Note: 2023 is only Jan to June 26 data, ~ 5 months, so impacts the trendline more than it should.
Department of Defence's contracts versus contracts for ALL-Other-Departments since 2011; dollar value, with trend line.
Worth note: since 2016 the value of contracts led by the DoD is equal to or greater than the value of contracts let by ALL-Other-Departments. Further, the annual total value of DoD contracts (new and amended) is rising significantly.
Note: 2023 is only Jan to June 26 data, ~ 5 months, so impacts the trendline more than it should.
Data: Jan-1-2011 to June 25, 2023 - total contract value by consultant - DoD v All other Depts
Data: Jan-1-2011 to June 25, 2023 - Big4 Total Contract Value by Year for DoD
