Consultancy firms working with federal government departments must uphold the highest ethical standards, a minister says, as departmental review into the conduct of a top four supplier gets underway.
Finance Minister Katy Gallagher issued the warning after her department placed a moratorium on KPMG bidding for any new contracts until September 30.
The temporary ban is in place while the department commissions an independent review into KPMG's governance, culture, ethics and integrity frameworks.
"We expect suppliers who earn the privilege of working for the public service should have the highest ethical standards," Senator Gallaher told ABC radio on Tuesday.
"We're concerned about issues and allegations that have been raised and are responding in a very strong way."
The issues surrounding KPMG fully erupted on May 29 during a hearing before the Joint Committee on Corporations and Financial Services in Canberra, where allegations made by a whistleblower were raised.
