A senate committee report into the integrity of government consulting services has made 12 recommendations for change, saying the PwC scandal and other ‘ethical failures’ by consultants threaten the integrity of the entire public service.

The inquiry is one of a number of investigations into the scandal, in which PwC was found to have used confidential government information for its own benefit and that of its corporate clients.

“This report documents the wide range of ethical failures within the consulting sector to which the committee has borne witness” the committee chaired by Senator Richard Colbeck says.

“The PwC tax leaks scandal, and the wave of ethical failures subsequently exposed at other large consulting and audit firms, has struck at the very core of Australians’ faith in the integrity of corporate Australia, and of the way in which such entities engage with government.

“This report is comprehensive in its account of historic and present ethical failures facing the consulting sector, and the way in which these failures have presented a clear and significant danger to the integrity, effectiveness and efficiency of the Australian Government and the APS.”

The committee handed down its final report this week following a 14 month inquiry involving more than 60 submissions and evidence heard over ten hearings.

The recommendations include: 

• That PwC publish information including names and positions about the involvement of partners and other employees in the breach of confidential government information

• That Finance updates its Contract Management Guide and Supplier Code of Conduct with a clause that states service providers have a duty to act in the public interest when doing work for the government, and improves training of procurement officials

• That Finance reviews its guidance on conflicts of interest to provide more clarity and consistency and improves the useability of AusTender

• That the government commissions a review by the Australian Law Reform Commission or a similar body of the legislative frameworks of partnerships with a focus on partnerships with more than100 partners

• That the finance minster table biannual statements on spending on consultancy contracts worth $2million or more by all Australian Public Service departments and agencies

The Greens have criticised the recommendations for not going far enough, saying they are too weak to deliver change.

“The modest recommendations in the final report are inadequate to meet the crisis uncovered by this inquiry,” committee member Senator Barbara Pocock said.

“We need stronger action to put an end to conflicts of interest, to ensure value for money and to promote public sector regrowth after decades of neglect.”

The greens make additional comments in an appendix to the report titled A Very Public Swindle, including for PwC to be banned for tendering for government contracts until all matters arising from current investigations by the Tax Practitioners Board (TPB), the AFP, the ATO and the National Anti-Corruption Commission (NACC) are finalised.

A spokesperson for PwC Australia said the company is considering the report.

“PwC continues to make progress on delivering on our Commitments to Change,” the spokesperson said in a statement.

“This includes significant steps to enhance our governance, culture and accountability, and we continue to work hard to rebuild trust and confidence with our stakeholders.”