KEY POINTS:
- PwC employees still have access to the Defence Secret Network.
- Treasury was first made aware of a potential issue with PwC in 2018.
- The firm had 54 contracts, worth over $220 million, with Defence.
Employees of embattled consultancy firm PwC still have access to the Defence Secret Network (DSN), an internal messaging service used by Australia's Defence Intelligence, despite the scandal embroiling the company deepening.
Nine PwC partners have been ordered to take leave after revelations the gained while helping the government to develop new tax policies to clients who could benefit.
But Labor is demanding the firm names all 53 employees involved in the tax leak, with Senator Deborah O'Neill saying failing to do so would amount to a "cover-up".
Greens senator David Shoebridge has equated allowing PwC to continue advising the government to having "Dracula at the blood bank" after Senate estimates heard it had 54 separate contracts with Defence worth more than $220 million.
Greens senator David Shoebridge says PwC advising government is like having 'Dracula at the blood bank'. Source: AAP / Mick Tsikas
PwC was handed a $19 million contract - up from an initial $6.4 million - to help upgrade the DSN, used by Defence officials to communicate with each other and separate departments like DFAT and Veterans' Affairs.
Defence secretary Greg Moriarty insisted the server had the "appropriate wraparounds you would expect" when it came to handling secret-level material, saying any PwC employee with access had "the appropriate security clearances".
But it was revealed no additional integrity checks had been conducted since the scandal broke.
Officials could not confirm how many PwC staff were embedded in the department or the full extent of their access to the DSN.
Embattled consultancy firm PwC has sent nine partners on leave over the leaking of a confidential tax briefing. Source: SBS News
"There have been no additional checks at all ... are you satisfied with that?" he asked.
Mr Moriarty did not answer directly, claiming the department was working through PwC's involvement "methodically" as part of a whole government response.
"You haven't even done basic integrity tests, secretary. Not methodical, glacial. That's a better description, isn't it?" Senator Shoebridge responded.
Last week, to the Australian Federal Police for his role in the scandal.
Mr Collins resigned late last year after a Tax Practitioners Board investigation, which saw him banned from practising as a tax agent until next year.
Finance Minister Katy Gallagher described the firm's behaviour as 'absolutely outrageous'. Source: AAP / Lukas Coch
But because the ATO maintained secrecy over its investigations, officials said that Treasury did not know the full extent of what Mr Collins was being investigated for.
Treasury secretary Steven Kennedy told estimates the firm's conduct was "clearly disturbing" but confirmed it continued to provide auditing service to his department.
"We're going to very carefully consider our future procurement arrangements as they come up, but we're going to act in line with the advice provided to us from the finance department," he said.
Finance Minister Katy Gallagher described PwC's conduct as "absolutely outrageous" and said the police referral was appropriate.
But Senator Gallagher stressed that the government could not rip up its ties with PwC because no procurement rules had been broken.
"I know people would like us to just go around cancelling existing procurement contracts, but that is not available without significant financial risk," she warned.
Greens senator Nick McKim said PwC's continuing involvement in advising the government was an "absurd situation".
"[This is] a company that, let's be clear, has stolen confidential Treasury information and monetised that to help their clients actually avoid paying tax in Australia."
