KPMG CEO Andrew Yates has found himself in the spotlight amid an ongoing Senate consulting inquiry in Australia. Yates is facing scrutiny for his denial of using 'power mapping,' a prevalent practice in the consulting industry where firms develop diagrams to identify and target key decision-makers in government for contracts.
Senators Deb O'Neill, Barbara Pocock, and Richard Colbeck are leading an inquiry into the consulting sector. The final report of this investigation is slated for March 2024. At a recent public hearing, Senator Pocock presented a diagram that seemed to be a power map, highlighting 72 decision-makers within the NSW department of transport. Each individual was color-coded based on their relationship with KPMG.
Denial amidst Evidence
Contrary to the presented evidence, Yates denied the diagram being a power map. He argued that it did not rank individuals based on their power or influence, and did not include any subjective assessment or persuasion strategies. The CEO's denial has been met with skepticism by the senators, heightening anticipation for the final report to see if Yates' denial withstands the scrutiny.
Wider Concerns in the Consulting Industry
The inquiry also sheds light on other concerns within the consulting industry. One such issue revolves around a partner at EY, who is allegedly involved in a tax exploitation scheme. This investigation into the consulting sector is critical, highlighting the need for transparency and accountability in the industry. With the final report due in a few months, the consulting world waits with bated breath for the outcomes of this inquiry.