A WA parliamentary question seeks information on the cost comparison between public and private sectors for a new young offenders prison, including KPMG's involvement and potential conflicts of interest. The government acknowledges KPMG's involvement but downplays conflict of interest concerns.

AnsweredQoN 6466Legislative Assembly
Asked
1 November 2011
Portfolio
Corrective Services

QuestionView source ↗

(1) Did the Government do a comparison of the costs for the provision of the new young offenders prison between the public and private sectors?
(2) Can you provide the outcomes of this comparison?
(3) Was an outside consultant engaged to play any part in the development of the comparison of costs and if so which was it?
(4) Did KPMG also provide advice to one of the companies who are bidding for the contract, and if so, is this a conflict of interest?
(5) If this is so, has anyone in Government been aware of this conflict?

AnswerView source ↗

Answered
30 November 2011
Responded by
Minister for Corrective Services
Response time
29 days
(1) Yes
(2) The final outcome of this comparison will not be known until completion of the due diligence and negotiation stage with the preferred tenderer.
(3) Yes - KPMG.
(4)-(5) KPMG did not provide advice to the company in respect of the bid for the Young Adults Facility however does provide internal audit and international executive services - employment tax to that company. While disclosure is required the provision of these services did not preclude KPMG from participating in the project.
(5) Not applicable.
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