08.03 pm, Wednesday February 10 2010

Backlash over Bracks' KPMG job

17:17 AEST Thu Oct 4 2007
AAP

The Victorian opposition is calling for rules to be imposed on government MPs quitting politics for the private sector amid revelations former premier Steve Bracks has scored a plum job with KPMG.

Mr Bracks sparked controversy when it was revealed he had joined the accountancy giant as a senior adviser and could earn up to $100,000 for working one day a week.

The opposition backed a call by the Greens for a 12-month cooling off period to prevent retiring MPs immediately working in their government fields of expertise.

Mr Bracks quit politics in July.

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The opposition's spokesman for the scrutiny of government, David Davis, said Mr Bracks' new post was a "brazen" move and an extraordinary conflict of interest given KPMG was a major government consultant.

But Premier John Brumby said his predecessor's appointment was a "non issue".

Over the past seven years, KPMG has been paid more than $60 million for over 100 government contracts, including at least 15 that are still active, according to the opposition.

Mr Davis said those contracts were now compromised.

"Many of those consultancies are probity audits and reviews of government programs," he said.

"For Steve Bracks to sit in the premier's office at 1 Treasury Place, to order those reviews from KPMG and then, weeks later, move over to KPMG and be a part of the process of finishing those reviews is extraordinary, unacceptable and it leads to a clear risk of a conflict of interest.

"I don't think just a few weeks out of the office of premier is enough to put some distance there, so there needs to be a better system."

A spokeswoman for KPMG said Mr Bracks would not be involved in any existing state government work or tenders for the next 12 months.

Mr Brumby defended the former premier, saying Mr Bracks was among a string of high level MPs to take on prominent private sector roles and that his job would not involve government lobbying.

"There's a whole series of examples where people's experience in life is obviously useful in a strategic sense, and that's all there is to it," Mr Brumby said.

"I honestly think it's a non issue."

Mr Brumby fended off calls for a cooling off period, saying ex-MPs had to work somewhere, especially newcomers who would not have the security of superannuation and redundancy entitlements.

"They're complying with the so-called community standards," he said.

"So politicians in the future, the bulk of them, will be leaving with no immediate pay and no immediate entitlements, and they will need to work."

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