Appreciate our quality journalism? Please subscribe here
DR ANDREW SCHMULOW
COMMENT
On Friday afternoon, accounting and “consultancy” giant KPMG appeared again before the Senate inquiry into consultancies.
This second act included a full flotilla. It was led by KPMG’s hapless — some would say “gormless” — CEO, Andrew Yates.
His first appearance before Parliament was an extravaganza of self-immolation — on a bonfire of “power maps” — and pitiful attempts to deny KPMG used them.
An attempt which had been blasted into oblivion when Yates was confronted with…KPMG’s power maps!
Please SUBSCRIBE HERE and support our quality journalism
O’Neill on Friday holds up a copy of a document provided by KPMG. Source: Australian Senate
Power maps are used to set out the who’s who in a government department: names; titles; positions; contact details; and, crucially, a colour-coded ranking system detailing how well-disposed (or otherwise) those individuals are to, say, KPMG.
These are used by consulting firms to get their tentacles into departments. To traffic in favours. To peddle influence, so as to sell consulting services — worth hundreds of millions of taxpayers’ dollars — into those departments.
And, crucially, these maps undermine an arms-length, transparent, non-partisan and uncorrupted framework for the procurement of consulting services.
They undermine getting the best and most appropriate advice, from the best qualified firms. They also work to preclude smaller, less influential, less corrupting, boutique firms.
“Power maps work to preclude smaller, less influential, less corrupting, boutique firms” — Dr Schmulow
Power maps, or relationship maps, or influence maps – or whatever other stupid name KPMG tries to come up with – are a contamination of government procurement.
They are inherently, demonstrably and unavoidably corrupting.
Put differently, power maps are corruption writ large. Pure and simple.
“Power maps are corruption writ large. Pure and simple” — Dr Schmulow
KPMG CEO Andrew Yates on Friday. Source: Australian Senate
For Act Two, Yates on Friday addressed the issue of the use of power maps in his opening statement.
He tried to spin it as some sort of “miscommunication” based on a “too-narrow definition” of the term “power map”.
The inquisitors — one from each of Australia’s three biggest political parties — were having none of it.
ALP Senator Deborah O’Neill reiterated what he and KPMG had originally been asked about their use of power maps.
KPMG and Yates had been asked the question “on notice”, and in writing (so no chance of a “misspoke in the moment” defence). And the question had indeed been cast in wide terms.
O’Neill read it out: “Is KPMG aware of the practice of consulting firms maintaining records that characterise any or all of the following: which public servants in government departments hold influence; what the relationship of public servants is to one another; what the attitude of individual public servants is towards your firm and/or consultancies more generally; or any similar information?”
“These records can be referred to as power mapping but may be referred to by another name”.
Yates AGAIN tried to deny the obvious, and again tried to claim he’d misread the question. O’Neill was having none of it. As she pointed out, she’d been a schoolteacher, and she knew all the tricks.
“Yates again tried to deny the obvious, and again tried to claim he’d misread the question” — Dr Schmulow
Exciting new podcast examining the corrupt disaster that is much of corporate Australia: LISTEN HERE
From there it got much, much worse: Yates, having burned himself to the ground last time, proceeded to set fire to the ashes.
KPMG had provided the Senate with the kind of maps they said they used: a government department organisational chart.
This lie — to be fair, this lie wrapped in plagiarism — burned out as fast as a grain of dust glancing off the earth’s atmosphere.
Its credibility sustained for a mere nano-second.
“Yates, having burned himself to the ground last time, proceeded to set fire to the ashes” — Dr Schmulow
It transpired that the “map” that KPMG had provided was, in fact, a copy and paste of an organisational chart, apparently plagiarised off the web from a government department.
Please SUBSCRIBE HERE and support quality journalism
Senator O’Neill said it took her “a couple of minutes” to see KPMG had apparently plagiarised it.
“I don’t know if you take us for fools but it took us a couple of minutes to look at this chart and go onto the internet and come up with a public document for one of the departments,” O’Neill said.
“All it looks like you’ve done is copy that chart, change that heading and pretend that’s one of your power maps.
“You must think we’re absolutely stupid,” O’Neill said.
“You must think we’re absolutely stupid” – Senator O’Neill
It was a moment in which KPMG’s intellectual prowess, research capacity and originality were completely immiserated. Along with the mere molecules of credibility that Yates could still muster.
It was pitiful.
But then it got even worse.
Federal Nationals MP and former Deputy Prime Minister of Australia Barnaby Joyce filmed Wednesday night. Source: SMH
O’Neill and Greens Senator Barbara Pocock produced more ACTUAL power maps — authored by KPMG — which KPMG had not revealed in their earlier “big reveal” – and which clearly outlined their “land and expand” strategy.
That is, to get in the door by quoting competitively, or under quoting, then vastly expanding the cost of contracts and footprint within departments.
Yates had — again — been hoisted by his own petard. It was as shocking as it was funny.
A CEO on $2.2 million a year reduced (as Pocock stated) to a “4-year-old caught with his hand in the cookie jar” who responds: “that’s not my hand and that’s not a cookie jar”.
KPMG’s “flotilla” on Friday. Source: Australian Senate
This was a most pathetic, piss-weak, incompetent, feckless, idiotic, gormless, worthless, hapless, immiserating, pitiful attempt to lie — and get away with lying — to parliament.
“Andrew Yates was reduced…to the professional services firm’s CEO equivalent of Barnaby Joyce” – Dr Schmulow
Andrew Yates was reduced, in front of his flotilla, his peers, his firm, parliament, and the nation, to the professional services firm’s CEO equivalent of Barnaby Joyce.
Flat on his back blabbering incoherently while passers-by stepped over his corpse.
Dr Andy Schmulow is an Associate Professor in the Law School at the University of Wollongong. He is internationally recognised in the field of financial regulation and driving good conduct in corporate governance and culture. He is also co-creator of podcast Corporate Grime.
Appreciate our quality journalism? Please subscribe here
DONATE
DR ANDREW SCHMULOW
COMMENT
On Friday afternoon, accounting and “consultancy” giant KPMG appeared again before the Senate inquiry into consultancies.
This second act included a full flotilla. It was led by KPMG’s hapless — some would say “gormless” — CEO, Andrew Yates.
His first appearance before Parliament was an extravaganza of self-immolation — on a bonfire of “power maps” — and pitiful attempts to deny KPMG used them.
An attempt which had been blasted into oblivion when Yates was confronted with…KPMG’s power maps!
Please SUBSCRIBE HERE and support our quality journalism
O’Neill on Friday holds up a copy of a document provided by KPMG. Source: Australian Senate
Power maps are used to set out the who’s who in a government department: names; titles; positions; contact details; and, crucially, a colour-coded ranking system detailing how well-disposed (or otherwise) those individuals are to, say, KPMG.
These are used by consulting firms to get their tentacles into departments. To traffic in favours. To peddle influence, so as to sell consulting services — worth hundreds of millions of taxpayers’ dollars — into those departments.
And, crucially, these maps undermine an arms-length, transparent, non-partisan and uncorrupted framework for the procurement of consulting services.
They undermine getting the best and most appropriate advice, from the best qualified firms. They also work to preclude smaller, less influential, less corrupting, boutique firms.
Power maps, or relationship maps, or influence maps – or whatever other stupid name KPMG tries to come up with – are a contamination of government procurement.
They are inherently, demonstrably and unavoidably corrupting.
Put differently, power maps are corruption writ large. Pure and simple.
KPMG CEO Andrew Yates on Friday. Source: Australian Senate
For Act Two, Yates on Friday addressed the issue of the use of power maps in his opening statement.
He tried to spin it as some sort of “miscommunication” based on a “too-narrow definition” of the term “power map”.
The inquisitors — one from each of Australia’s three biggest political parties — were having none of it.
ALP Senator Deborah O’Neill reiterated what he and KPMG had originally been asked about their use of power maps.
KPMG and Yates had been asked the question “on notice”, and in writing (so no chance of a “misspoke in the moment” defence). And the question had indeed been cast in wide terms.
O’Neill read it out: “Is KPMG aware of the practice of consulting firms maintaining records that characterise any or all of the following: which public servants in government departments hold influence; what the relationship of public servants is to one another; what the attitude of individual public servants is towards your firm and/or consultancies more generally; or any similar information?”
“These records can be referred to as power mapping but may be referred to by another name”.
Yates AGAIN tried to deny the obvious, and again tried to claim he’d misread the question. O’Neill was having none of it. As she pointed out, she’d been a schoolteacher, and she knew all the tricks.
Exciting new podcast examining the corrupt disaster that is much of corporate Australia: LISTEN HERE
From there it got much, much worse: Yates, having burned himself to the ground last time, proceeded to set fire to the ashes.
KPMG had provided the Senate with the kind of maps they said they used: a government department organisational chart.
This lie — to be fair, this lie wrapped in plagiarism — burned out as fast as a grain of dust glancing off the earth’s atmosphere.
Its credibility sustained for a mere nano-second.
It transpired that the “map” that KPMG had provided was, in fact, a copy and paste of an organisational chart, apparently plagiarised off the web from a government department.
Please SUBSCRIBE HERE and support quality journalism
The Senate inquiry hearings Friday. Source: The Klaxon
Senator O’Neill said it took her “a couple of minutes” to see KPMG had apparently plagiarised it.
“I don’t know if you take us for fools but it took us a couple of minutes to look at this chart and go onto the internet and come up with a public document for one of the departments,” O’Neill said.
“All it looks like you’ve done is copy that chart, change that heading and pretend that’s one of your power maps.
“You must think we’re absolutely stupid,” O’Neill said.
It was a moment in which KPMG’s intellectual prowess, research capacity and originality were completely immiserated. Along with the mere molecules of credibility that Yates could still muster.
It was pitiful.
But then it got even worse.
Federal Nationals MP and former Deputy Prime Minister of Australia Barnaby Joyce filmed Wednesday night. Source: SMH
O’Neill and Greens Senator Barbara Pocock produced more ACTUAL power maps — authored by KPMG — which KPMG had not revealed in their earlier “big reveal” – and which clearly outlined their “land and expand” strategy.
That is, to get in the door by quoting competitively, or under quoting, then vastly expanding the cost of contracts and footprint within departments.
Yates had — again — been hoisted by his own petard. It was as shocking as it was funny.
A CEO on $2.2 million a year reduced (as Pocock stated) to a “4-year-old caught with his hand in the cookie jar” who responds: “that’s not my hand and that’s not a cookie jar”.
KPMG’s “flotilla” on Friday. Source: Australian Senate
This was a most pathetic, piss-weak, incompetent, feckless, idiotic, gormless, worthless, hapless, immiserating, pitiful attempt to lie — and get away with lying — to parliament.
Andrew Yates was reduced, in front of his flotilla, his peers, his firm, parliament, and the nation, to the professional services firm’s CEO equivalent of Barnaby Joyce.
Flat on his back blabbering incoherently while passers-by stepped over his corpse.
Dr Andy Schmulow is an Associate Professor in the Law School at the University of Wollongong. He is internationally recognised in the field of financial regulation and driving good conduct in corporate governance and culture. He is also co-creator of podcast Corporate Grime.
BEFORE YOU GO: Truly independent, quality journalism is vital to our democracy. Please SUBSCRIBE HERE or support us by making a ONE-OFF DONATION. Thank you!
Anthony Klan
Editor, The Klaxon
Help us get the truth out from as little as $10/month.
Unleash the excitement of playing your favorite casino games from the comfort of your own home or on the go. With real money online casinos in South Africa, the possibilities are endless. Whether you’re into classic slots, progressive jackpots, or live dealer games, you’ll find it all at your fingertips. Join the millions of players enjoying the thrill of real money gambling and see if today is your lucky day!
The need for fearless, independent media has never been greater. Journalism is on its knees – and the media landscape is riddled with vested interests. Please consider subscribing for as little as $10 a month to help us keep holding the powerful to account.
Related Posts
COMMENT: Amateur Hour – the Voice referendum was lost by the “Yes” side
COMMENT: Almost 700 deaths. Zero heads have rolled. Why?