AFP investigators are looking into PwC, while PwC staff still work in AFP offices. 

The Australian Federal Police (AFP) has launched an investigation into a former PwC partner for potential criminal offences. 

However, PwC holds lucrative contracts with the AFP and serves as its auditor, raising concerns about conflicts of interest.

Senator Barbara Pocock has called for a “real separation” between the investigation and the consulting firm operating within the same organisation, citing the close proximity and interactions between personnel. 

“It's not a good look,” she said. 

“People share car parks, they share coffee space, they talk to each other in corridors.”

New revelations indicate that PwC is the preferred firm for the AFP, with Senate documents showing over $20 million in contracts since 2021. 

The Greens have urged the Tax Practitioners Board (TPB) to suspend PwC's registration, effectively preventing the firm from operating in the lucrative tax field. 

On Tuesday this week, a Senate committee will question the Australian Taxation Officer (ATO) and Treasury regarding the scandal. 

The TPB and the Australian Securities and Investments Commission (ASIC) will face inquiries on Wednesday regarding their knowledge of the situation and the actions they have taken.

The AFP's investigation of PwC revolves around a severe conflict of interest, though the appearance of a conflict is also a concern. 

PwC serves as the AFP's auditor and has secured the majority of the force's contracts, amounting to more than $20 million in the past two years and 39 per cent of the AFP's spending among the top seven consulting firms.

The investigation focuses on former PwC partner Peter-John Collins, who allegedly shared confidential government briefings on multinational tax plans with PwC colleagues, both in Australia and abroad. 

It is alleged that Collins devised strategies to circumvent these plans, resulting in substantial financial gains for the firm.

Large government agencies, including the AFP, Defense, and Services Australia, heavily rely on consulting firms such as PwC to fulfil critical aspects of their roles. 

Bill Browne from the Australia Institute says PwC has been in a dominant position.

“PwC does seem to be the consulting firm of choice for the Federal Police, which obviously puts them in a difficult position now that they're investigating the behaviour of a former PwC partner,” he said.

The Greens argue that the over-reliance on consulting firms by government entities amplifies conflicts of interest and risks. They are seeking to block PwC from providing tax advice during the police investigation into potential criminal charges regarding the confidential government information leaked by Mr Collins to aid multinational companies in minimising their tax obligations.