The Defence Department breached the intent of Commonwealth purchasing rules when it handed consulting giant Accenture a contract now worth $143 million to deliver security vetting services, according to the auditor-general.

In its latest report that is critical of Defence procurements, the Australian National Audit Office said Defence’s acquisition of the myClearance system was only “partly effective”, and revealed that bureaucrats had also admitted to the government last year that the system would fall short of the expected functionality.