WA stands down Deloitte staff member over conflict of interest claim

Deloitte Australia has claimed a member of the firm stood down from her role with a state government department, due to conflicts of interest concerns, has no current role in the firm.

Parliament has heard a Deloitte staff member is facing an investigation in Western Australia amid concerns over a conflict of interest breach.

Deloitte Australia has claimed a member of the firm stood down from her role with a state government department, due to conflicts of interest concerns, has no current role in the professional services giant.

Green Senator Barbara Pocock put the allegations to Deloitte’s leadership as they appeared before the Senate Finance and Public Administration committee on Monday, claiming a member of the firm who was working with the Western Australian government was now under investigation.

Senator Pocock told parliament the Deloitte staff member had been placed under investigation after a situation “where there have not been appropriate guardrails put in place against conflicts of interest”.

WA department of health officer of the director general associated executive director Ashlee Wells told Senator Pocock’s office, in an email seen by The Australian, “concerns have been raised” regarding a member of staff who was not a “permanent employee”. “The concerns relate to a possible connection to Deloitte,” she said. “Inquiries into the matter are underway and while this occurs, the employee is out of the workplace.”

But a Deloitte spokeswoman said the firm had only been told about the incident on Monday and the firm’s staff member involved was on a voluntary period of absence while she was working with WA Health. “WA Health informed Deloitte today that an employee, who was on a voluntary leave of absence from Deloitte, had been stood down from their role at WA Health,” she said.

Deloitte Australian federal government lead client services partner Matthew O’Donnell told parliament the firm did not provide “secondment services to the Australian government”, but subsequently confirmed the firm did have “less than 20 staff” on secondment with state government departments.

Deloitte CEO Adam Powick

Deloitte faced questioning over several scandals haunting the firm, including an investment scheme pitched by former partner Amberjit Endow, who is alleged to have raised more than $60m from investors, including Deloitte CEO Adam Powick, promising 40 per cent returns on Indian government infrastructure.

Deloitte chair Tom Imbesi refused to reveal the name of a separate government department caught up in a different case of misuse of government information disclosed by the firm in its response to the parliament.

Deloitte disclosed it had disciplined a staff member who had shared confidential government information improperly.

However, Mr Imbesi said the firm did not want to reveal the information, noting Deloitte “would absolutely like to check with the department before we provide that information”.

Deloitte’s chief risk officer Sneza Pelusi said the confidentiality breach was inadvertent and was reported to the government “within 48 hours”. “The incident itself related to the protocols that we had in place from one team member working with another team member on the same engagement,” she said.

Ms Pelusi said Deloitte shared the investigation with the department at the conclusion, with the firm deleting the information and standing down the staff member.

The firm also confirmed it had dealt with an incident of alleged fraud in its administration and restructuring business unit.

Mr Imbesi told the Senate inquiry the firm supported strengthening regulatory oversight of the consulting sector as well as a government review of procurement policies “for greater clarity and accountability on the delivery of value through any engagement”.

“The review should also consider the adequacy of powers to penalise tenderers “ he said.

Mr Imbesi said any review should also look at reviewing “conflict and confidentiality requirements while working with government”, which could see the Australian National Audit Office brought in to review “our relevant systems”.

Mr Powick also defended himself after confirming he was paid north of $3.5m as CEO.

Mr Powick He told Labor Senator Deb O’Neill he was not “worth seven times the salary of the Australian prime minister” but said pay was set against the broader industry.

“My salary is said to be commensurate with others to play a similar role in our profession and we also try to ensure the partners and our people are paid commensurate and competitively with others in our profession,” he said.

Deloitte CEO Adam Powick