The Australian public sector and the PwC affair: A social systems perspective

Abstract

There is a growing concern in Australia and internationally about the growing number of scandals surrounding the consulting operations of professional service firms, especially the Big Four accounting and Big 3 consulting firms. In Australia, PwC, which discloses confidential information about an incoming tax avoidance law to international clients to help dodge the new law, is currently the main talking point. This has resulted in several public enquiries. Our analysis of these enquiries and several other scandals highlights how these consulting firms' influence effectively privatises and hollows out the public sector, putting consulting firms' profits and big business interests before the public interest and ultimately threatening our democracy. As a result, we argue that an excellent first step would be for the Royal Commission to enter the consulting industry in Australia. However, more action is needed from international policymakers and regulators because the tentacles of the consulting companies and associated scandals go beyond Australia and threaten democracy as the rich and powerful seek to control the public sector further.