Over the past few years,McKinsey has paid out nearly $1.54 billion to settle various lawsuits over its work for Purdue Pharma,manufacturers of OxyContin,the drug that got Middle America hooked on heroin. And that’s without even going into the firm’s work for Big Tobacco and autocratic governments in Russia,China and Saudi Arabia.
But it seems none of this bad PR has reached the ears of bureaucrats in Canberra,who remain firmly hooked on the firm’s services,even after the scandal engulfing PwC injected some much-needed scepticism around calling in the consultants.
McKinsey is a particular favourite with the Department of Defence,which recently extended a $28 million contract with the firm for “computer services” until this June. Defence also paid McKinsey $5000 a day during a three-month period last year to conduct an “inclusive leadership review”,whatever that means.
The Department of Home Affairs,meanwhile,entered into a $1 million,five-month contract with McKinsey for “delivery of strategic policy deliverables”. McKinsey charged the Department of Climate Change $1.6 million for two months’ work last year,the purpose of which was to “produce a robust evidence-base to inform and guide the Department to develop a cohesive package of policy measures”. Sure.
A Home Affairs spokesperson told us the Department “is committed to ensuring its contractual arrangements uphold the highest standards of integrity,” and that it undertakes regular due diligence of contracted suppliers
The other departments didn’t respond to CBD’s questions.
And that’s just the recent stuff. In 2021,McKinsey was paid millions to help with the vaccine rollout. We know how that went. The Morrison government paid it $6 million to “model” its largely detail-free net-zero plan that same year. It made some PowerPoint slides.
And while the public service is up to its eyeballs in McKinsey contracts,the firm’s alumni keep showing up in the corridors of power. New Liberal member for CookSimon Kennedywas a partner there and Home Affairs MinisterClare O’Neil,shadow treasurerAngus Taylor,his Coalition frontbench colleagueDavid Colemanand Wentworth teal MPAllegra Spenderhave all come through its doors.
While CBD isn’t suggesting any of that crew worked for any nefarious clients,it goes to show that McKinsey,which has a habit of recruiting young high-achievers,is a bit of a training ground for people aspiring to a life of power and influence.
As long as that lasts,we reckon it’ll remain a player in the Canberra bubble.
NUCLEAR OPTION
One of the stranger developments in the current political cycle is the Coalition’s wholehearted embrace of nuclear energy,a solution to the climate wars literally no voter ever asked for.
So far,it all seems a bit like more trouble than it’s worth because even some of the more nuke-crazy Nats aren’t too keen on having a small modular reactor in their electorate. It’s caused further fractures among the Coalition,with Nationals leaderDavid Littleproud,who is at least game enough to offer his vast electorate of Maranoa as a reactor host,telling his party he wouldn’t let the Liberals choose where to put any of the facilities.
And it’s alienated a few moderates,withMatt Keanrecently quitting a group for climate-conscious Liberals after learning that it was becoming another vehicle to push for nuclear energy,thanks to input from energy mogulTrevor St Bakerand former Nats MPLarry Anthony.
Meanwhile,at a state level,the NSW Liberals aren’t quite as enthused about a nuclear future as Dutton and co. But it’s a different story among the Nationals. This week,the party’s state leaderDugald Saundersand MPSam Farraway,who’s widely tipped to go federal at the next election,landed in France as part of a European study tour into nuclear energy.
Despite its reputation as a nation of peaceniks,the French are fiends for nuclear power – it accounts for about 70 per cent of the country’s electricity
So,any chance of a reactor in Dubbo or Orange? We reached out to the lads on tour,but they weren’t keen for a chat until they got home.
ROY OF THE ROVERS
Wyatt Roy,once our youngest-ever elected MP,has always been the adventurous sort. In 2016,shortly after losing his seat in parliament,Roy travelled to Iraq for some reason,where he found himself on the frontlines of conflict between ISIS and Kurdish Peshmerga forces.
More recently,that thirst for adventure has taken him to Saudi Arabia,where he’s Head of Innovation for NEOM,the absurd line city which is the latest vanity project of the kingdom’s ruler,and bonesaw aficionadoMohammad Bin Salman. Quite the career change for one of the first Liberals to back same-sex marriage!
News that NEOM,a 170-kilometre line city,would be cut in size by a whopping 98.6 per cent clearly hasn’t affected Roy’s job prospects. He’s still documenting his merry Saudi adventures on Instagram,and was most recently off to China,spruiking NEOM at a roadshow for business leaders in Beijing,Shanghai and Shenzhen.
One image in particular stood out — of Wyatt at a lectern in front of signs advertising the Chinese government’s controversial Belt and Road Initiative. We can’t imagine a sitting Australian politician being seen dead with that in the background.
Clarification:This story was updated to include comments from the Department of Home Affairs