Government Procurement

In reply to the Hon. F. PANGALLO ().18 May 2023).

The Hon. K.J. MAHER (Minister for Aboriginal Affairs, Attorney-General, Minister for Industrial Relations and Public Sector): The Treasurer has advised:

1. 30 public authorities have reported approximately 282 contracts were executed by the South Australian government with PwC since 2016. These reported contracts have a total estimated value of $57.56 million. The total value of invoices issued by PwC across all public authorities were worth $56.94 million.

2. There are currently 32 contracts in place across government with PwC. These contracts when established had an estimated total value of up to $20 million.

3. In response to the recent findings by the Tax Practitioners Board regarding PwC's use of confidential government information obtained through government contracts, the Department of Treasury and Finance is taking a range of measures to ensure there are sufficient safeguards in place to prevent similar events occurring in the future.

The Under Treasurer has written to the managing director of PwC SA twice to understand how PwC intend to address these concerns as it relates to contracts with the South Australian government, and to receive assurance that safeguards are in place to prevent similar events occurring in future and ensure any personnel currently being investigated are removed from all government work.

In their initial response, PwC gave assurance that the highest possible standards of integrity and confidentiality are maintained through each engagement, panel agreement and associated contract in respect of their work with the South Australian government.

In a subsequent letter to PwC, the Under Treasurer requested that all PwC personnel, no matter their location, that are currently being investigated be excluded from all existing and future work with the South Australian government.

The Procurement Review Committee provides strategic oversight and review of procurements that are high risk, high value or of public interest. The committee will continue to be briefed on the situation by the Department of Treasury and Finance and will provide advice to public authorities and the Treasurer as appropriate.

4. A letter has been issued to all other suppliers on the across-government Audit and Financial Advisory Services panel, seeking a similar assurance and commitment.

The Department of Treasury and Finance will continue to monitor the situation with PwC following the sale of its government consulting business to Allegro Funds.

The Crown Solicitor's Office is reviewing existing contract clauses to ensure there is sufficient security and safeguards in place for the use of confidential information obtained through government contracts, and disclosure of any breaches. This review is considering existing whole of government panel arrangements and standard contract templates.

The South Australian government may seek to vary existing arrangements if it considers it necessary to impose further measures.

Chief executives are responsible for ensuring that appropriate risks are considered when evaluating offers from all suppliers and contract management of suppliers. All public authorities have been encouraged to have ongoing discussions with contractors about their obligations relating to probity and confidentiality in respect to the provision of services to the South Australian government.

The Department of Treasury and Finance will continue to provide advice to public authorities as more information is known.