Deloitte executives face Senate inquiry into consultants in the wake of PwC scandal

Executives facing the Senate committee set up in the wake of the PricewaterhouseCoopers tax leak scandal were criticised for withholding information from the committee, including details of an incident involving the misuse of government information.

The public hearing also saw chief executive officer Adam Powick concede that despite his $3.5 million salary, he was not "worth seven times the salary of the Australian prime minister", after the question was put to him by Labor senator Deborah O'Neill.

The firm told the Senate committee there had been 121 substantiated matters of misconduct in the 2023 financial year, one of which related to the misuse of government information.

Chief risk officer Sneza Pelusi said the incident did not involve information being shared with any third parties, and the person who inadvertently shared information was stood down.

"There was a core team and a broader team, and there was confidentiality requirements within that core team," chairman Tom Imbesi added.

"One individual shared information to the broader team on the project, it was not done for commercial gain.

"The approach we took to address the matters, the department was satisfied with."

READ MORE:

But Senator Pocock blasted officials for being "opaque", when they refused to identify which department the incident occurred in.

Mr Imbesi said the firm would instead answer the question on notice, once it had sought clearance: "We'd like to check with the department and make sure that we don't have any other matters that we need to consider before we reveal that."

"I want to make the point that this is the one example where your entity has misused government information and you came here today with much time for preparation, unprepared to talk about the specifics of that," Senator Pocock responded.

"And that is one of the reasons why there is distrust about large consulting firms.

"You are opaque in the information you provide, even when clear notice is given that we will be interested in this matter, not just us, but the Australian public.

"So I am very disappointed that you are going to take that on notice, I think it is very untransparent of you."

The Senate committee began inquiring into the management and integrity of consulting services in March, after the Tax Practitioner's Board banned PwC Australia's former head of international tax Peter-John Collins from practising as a tax agent for two years.

Mr Collins allegedly shared confidential information on Australia's multinational tax avoidance strategy with staff at the firm, after a confidential Treasury consultation.

Senator O'Neill also lashed the firm for declining to provide its partnership agreement, the document outlining each partner's responsibilities, calling it a "a confidential and commercially sensitive document". She highlighted that PwC had provided its agreement to the committee.

"The nation's appalled at what's gone on with PwC," Senator O'Neill said.

"And this instance where you've had the opportunity to come before this committee and put on the public record, PwC did better than you because they actually put evidence out there. They trusted the committee with their partnership agreement.

"You've come in with a document that says everywhere 'commercial in confidence', 'commercial in confidence'."

"We're not here to just be palmed off."

We've made it a whole lot easier for you to have your say. Our new comment platform requires only one log-in to access articles and to join the discussion on The Canberra Times website. Find out how to register so you can enjoy civil, friendly and engaging discussions. See our moderation policy here.