Official figures reveal a whopping $277m is going towards outside consultants and contractors. Search the full list of companies and see who runs them.
South Australian taxpayers pay more than $3.2m a day for the state government to hire outside help, official figures show, as dozens of the highest earning companies are revealed.
Excluding transport and infrastructure spending, government departments and agencies spent at least $277m on external consultants or contractors last financial year despite the public service growing by nearly 1700 workers.
Spending spiked nearly 50 per cent over the past three years after almost $188m went on external advice, work or services in 2020/21, government data shows.
The total cost across all departments last year was $1.169bn – or $3.204m a day.
Unions called on the government to abandon its reliance on consultants while the Opposition criticised the spending.
Ministers defended the necessary spending as most contracts were to find staff amid a national worker shortage crisis.
For the first time, the list of businesses receiving more than $1m in taxpayer funds for government contract work can also be laid bare.
SCROLL DOWN FOR THE FULL LIST OF MILLION DOLLAR COMPANIES
Almost 50 international, national or local companies each billed taxpayers a seven figure sum last financial year for their collective contracts, according to the first such analysis of public records.
Some companies, only a quarter of whom were based in SA, had multiple government contracts.
There is no suggestion that any of the individuals or businesses have engaged in any wrongdoing nor that they haven’t rightly earned their money.
The highest earning private company, multinational employment firm Hays Specialist Recruitment, received almost $18m in taxpayer funds from 15 contracts to supply workers, including temporary staff.
Hays was paid almost double the next highest consultant Johns Lyng Group – Disaster Management Australia – which cleaned up the River Murray flooding for Green Industries.
Annual reports, tabled in parliament, show the biggest spender last year financial year was the Transport and Infrastructure Department, which paid more than $892m to contractors and consultants.
Its spending, however, fluctuated – it was almost $2bn in 2021/22 and $1.38bn the previous financial year – due to most contracts being paid for building works or construction.
Other top spending agencies in 2022/23 included Education and Primary Industries, as well as Premier and Cabinet departments along with SA Health and SA Police.
This article contains features which are only available in the web versionTake me there
TAFE, Renewal SA and Corrections recorded the highest total increases for consultants and contractors over the past three years.
Ministers said the increased spending was “mainly due” to work with the River Murray flooding, PIRSA infrastructure projects such as the Dog Fence rebuild, the National Schools Reform Agreement, the new Office of Hydrogen Power SA and a major Education IT system project.
Officials said more spending on contractors reflected a “temporary increase in resourcing for time-limited initiatives” such as the new Women’s and Children’s Hospital and South Road project.
Figures show the public sector headcount increased from 109,736 in 2020-21 to 114,735 in 2022/23 – a rise of 4.5 per cent.
Despite the Labor government’s promise to cut back on fat cats, executive numbers rose by nearly 100 over the same period.
Last year’s budget warned agency bosses to make cuts by “reducing expenditure on consultants, contractors, marketing, communications, accommodation, travel, and other goods and services”.
Treasurer Stephen Mullighan said the government preferred employing people rather than use consultants or contractors.
“Generally the government does not support the ongoing use of contractors in place of recruiting the right skills to the public sector,” he said.
“But in such a tight labour market and where skills have been required for time-limited projects, trying to recruit people during the skills shortage has been really difficult.
“What these figures show is there are some agencies that have been prudent but others clearly haven’t; the government expects restraint in using contractors and there should be clear justification with for their use.
“Some agencies have increased their spending rather than decrease in line with the government’s clear public expectations.”
Public Service Association general secretary Natasha Brown criticised increasing levels of budgets heading to firms “with relatively little public scrutiny and accountability”.
“This government came to power on a platform of returning public services to public hands,” she said.
“The government must focus on re-establishing capacity within the public service rather than pouring public money into consultants’ and contractors’ gravy trains.”
Opposition spokesman Matt Cowdrey said “unsurprisingly, this has also seen a steep increase in contractor and consultancy payments” and asked if the government would cut spending.
He said last year’s budget confirmed government department spending “has ballooned, with nearly every one of them overspending their budgets” in Labor’s first year.
LISTED: SA’S MILLION DOLLAR CONTRACTOR AND CONSULTANT COMPANIES
Hays – $17.85m total, 15 departments
Matthew Dickason, 54, is Asia Pacific chief executive officer of Hays Specialist Recruitment, which is a subsidiary of the British multinational. The Sydney-based recruiter has been boss for just over a year after almost 20 years with the company.
Lisa Morris is Hays’ Adelaide-based chief customer officer for Australia and New Zealand for almost a year after being the company’s SA/NT state manager during a 27 year career with the company.
Philip “Phil” Allen has been a Hays’ director since 1999 and is currently its Asia Pacific finance director.
Johns Lyng Group – $9.85m, one department
Scott Didier, 61, is managing director and chief executive of Johns Lyng Group – a provider of “integrated building services”. The group says its core business is rebuilding and restoring properties and contents damaged by insurable events, including weather and fire. Mr Didier took up leadership of the group on acquisition in 2003.
Peter Nash, 61, is chairman of Johns Lyng Group. He also serves on the boards of Westpac, Mirvac and ASX Limited, and has previously held the role of national chairman of KPMG Australia.
Randstad – $8.9m, 13 departments
Nick Pesch is managing director Australia and New Zealand at Randstad, a leading global HR and recruitment company. Port Lincoln-born Mr Pesch, 49, has been with the business since 2006 and held various management positions.
Shaun Mansell is regional manager (professionals) for SA and WA at Randstad. He has worked in the Adelaide recruitment sector since 2005.
KPMG – $7.38m, 14 departments
Justin Jamieson is SA chairman at KPMG Australia. He has been a partner at the big four firm since 2008 and spent more than 25 years working in the professional services sector.
CIVICA – $6.58m, one department
Lee Perkins, 51, is chief executive at Civica, a company that develops software to help deliver critical services. Mr Perkins, who is UK-based, joined Civica in 2022 after holding various senior positions in the UK technology sector.
Schools Ministry Group – $6.025m, one department
Melanie Schmidtke, 46, is board chair at Schools Ministry Group, which offers pastoral care and student wellbeing services for more than 350 South Australian public schools.
Talent international (SA) – $5.98m, 10 department
Anthony Whyte is Adelaide managing director at Talent International (SA), which connects companies with contract and permanent professionals across various sectors.
Paxus Australia – $5.8m, nine departments
Jason Trevethick, 52, is executive director at Paxus Australia, a leading IT recruitment agency. He has been with the company for two decades.
Vikash Raniga, 53, of Queensland, is also a director at the company.
John Wentzel, 57, is also a director at Paxus Australia.
Praanesh Praasad, 59, is also listed as a director at the company.
Cowell Electric – $5.18m, one department
Sue Chase, 65, is managing director at Cowell Electric, a powerline construction and electrical contracting company based on the Eyre Peninsula. The business was founded in 1928 to provide electricity to the Cowell township before there was a state grid.
PwC – $4.75m, 11 departments
Julian McCarthy is SA managing partner at beleaguered professional services firm PwC Australia. Mr McCarthy took on the top local role late last year after former SA managing partner Jamie Briggs left to become corporate affairs lead at Scyne Advisory.
Ernst & Young – $4.08m, six departments
Mark Phelps, 57, is Adelaide managing partner at professional services firm Ernst & Young. Mr Phelps was appointed to the role in 2018 following the resignation of former boss Don Manifold.
Dialog Group – $4.25m, three departments
Alan Key, 67, is the Queensland founder of Dialog Group, which was one of the country’s largest IT providers but now is part of the global communications firm Singtel after it was sold to the Singapore-based giant for $325m in 2022. He founded it with Robert “Bob” Tisdall, 73, who is now retired.
Akkodis Australia Talent – $3.78m, eight departments
Peter Hawkins, 57, is chief executive and senior vice president of Akkodis Australia Talent, a recruitment firm focusing on technology and engineering which was formerly known as Modis Staffing Pty Ltd. He joined the company more than 18 months ago.
Edward “Ed” Hanks, 44, is a director of Akkodis Australia Talent and is group reporting manager of Adecco Australia.
Andrew Virgona, 54, is also a director of Akkodis Australia Talent
Surf Lifesaving SA – $3.6m, two departments
Damien Marangon, 47, is chief executive of Surf Life Saving South Australia, a position he has held for more than five years, having joined from Shooting Australia in April 2019.
Chamonix IT Consulting – $3.38m, five departments
Emmanuel Bresson, 56, has been a director of Chamonix IT Consulting since 2010, which has been considered one of the state’s fast-growing information technology firms.
David Sampson, 48, is also listed as a director of the company he has been involved with for almost 14 years. Scott Grigg and Jaime Potter are also directors, who are also involved in Expose Data firm.
Wayne “Cully” Cullinan, 55, is a director and group chairman of Pernix Pty Ltd, who is also a well known businessman and director of other companies.
Heli Surveys Pty Ltd – $2.36m, one department
Carl Bruce, 61, has been the director of NSW-based Heli Surveys Pty Ltd, a land care management business, for the past 20 years. It is based in the Snowy Mountains but also has remote bases in Victor Harbor and Victoria.
Colin de Pagter, 62, has been a Heli Surveys Pty Ltd director since its inception in 2003. He and Mr Bruce also operate Snowy Mountains Helicopters.
Escient Pty Ltd – $2.32m, five departments
Stephen Mabbs, 59, is a former soldier who has been chief executive for almost eight years and director of Escient Pty Ltd, a managing consultant firm that was once billed as among the country’s fastest growing businesses.
Tom Stianos, 70, is the Melbourne-based non-executive chairman of Escient Pty Ltd, who also holds several other board positions.
SA Outback Company Pty Ltd – $2.32m, one department
Michael “Mike” Pitman, 56, is founder and director of SA Outback Company Pty Ltd, which is a Fleurieu Peninsula building company founded in 2007 that specialises in country fencing and horse-related work.
Faith Mason, 59, has been a director of SA Outback Company Pty Ltd since 2014.
Expose Data Pty Ltd – $2.06m, five departments
Scott Grigg, 50, has been a director of Expose Data Pty Ltd since 2016 and is part of the bigger Chamonix Group having been in business for almost a quarter of a century.
Geoff Rohrsheim, 55, has been a director of Expose Data since last year after a five year hiatus. Mr Rohrsheim holds several other directorships including as deputy chairman of ASC.
Jamie Potter, 55, has been a Victoria-based director of Expose Data since 2016.
ISD Cyber – $2.02m, three departments
Grant Hughes, 45, is the Adelaide co-founder and director ISD Cyber, also known as ISDefence Pty Ltd, a consulting firm specialising in digital safety since 2017.
Yvonne Sears, 46, is managing director of the firm with more than 24 years’ experience in information security and other privacy concerns.
GHD – $1.99m, six departments
Jim Giannopoulos, 62, earlier this month replaced Ashley Wright, 60, as chief executive of GHD, an engineering firm founded in Melbourne in 1928. He joined the company as a graduate chemical engineer more than 30 years ago and worked all over the world, most recently in North America.
Fujitsu Australia Ltd – $1.94m, two departments
Edge Recruitment (SA) Pty Ltd – $1.94m, four departments
Peta Seaman, 41, is the managing director of Edge Recruitment (SA) Pty Ltd, which was founded in 1998. The qualified hairdresser became boss last year after it merged with people2people.
Jane Carey, 49, is Edge Recruitment’s co-founder, former chief executive and now a director.
Gary Beesley, 72, is a co-founder and director of the company and was a former MD.
Mark Smith, 53, is a director of the company after people2people merged with the business last year.
Innodev – $1.9m, one department
Alan Key is also founder and director of Innodev, which is a subsidiary of Dialog Group.
Adelaide University – $1.89m, 10 departments
Professor Peter Høj is the vice-chancellor and president of the University of Adelaide after working for various other universities including UniSA. He also sits on various boards after starting as an Adelaide university academic.
Deloitte Touche Tohmatsu – $1.88m, five departments
Hendri Mentz is Deloitte Touche Tohmatsu managing partner in SA, NT and Tasmania who has more than 25 years’ experience specialising in “risk and control transformation” after starting at rival “Big4” firm EY.
Hannan & Partners Pty Ltd – $1.81m, five departments
Mat Hannan, 48, is director and wing commander of Adelaide Hills-based Hannan & Partners Pty Ltd, which is a “full-service professional risk, security advisory and IT consulting firm”.
Peoplebank Australia – $1.697m, five department
Craig Salmon is the Adelaide-based SA state manager of Peoplebank Australia, which is a national recruitment firm founded in 1990.
Kiandra IT Pty Ltd – $1.62m, one department
Martin Cooperwaite, 49, is the other co-founder and director of Kiandra IT Pty Ltd, which was born with his university mate.
SFDC Australia Pty Ltd – $1.62m, one department
SFDC Australia is known as SalesforceDotCom or Salesforce. San Francisco-based Marc Benioff, 59, and Parker Harris, 57, founded the tech company in 1999, which is now worth more than $AUD439bn and employs more than 70,000. Its executive vice president in Australia is Frank Fillmann.
Sayers Advisory Pty Ltd – $1.58m, one department
Melbourne-based Luke Sayers, is executive chairman and co-founder of Sayers Advisory Pty Ltd, which is an advisory and investment business founded in 2020. Mr Sayers, 54, is Carlton Football Club president and former chief executive officer of embattled accounting firm PwC.
Sameer “Sammy” Kumar, 56, is co-founder, director and chief executive officer who has more than 30 years experience in management consulting, mergers and acquisitions, risk management, strategy, technology as well as ventures. He is also a former PwC managing partner who sits on various boards.
Ventia Australia Pty Ltd – $1.58, five departments
Dean Banks, 52, is the Sydney-based managing director and group chief executive of Ventia Australia Pty Ltd since June 2022.
Melbourne-based David Moffatt, 63, has been chairman since the formation of Ventia in 2015, according to its website. Sydney-based Mr Moffatt sat on boards or held executive roles with Telstra, GE Capital and other infrastructure services businesses.
Air Charter Australia Pty Ltd – $1.5m, one department
Wesley Matthews, 46, is director Air Charter Australia Pty Ltd, which is based on the Eyre Peninsula.
Fields Group Pty Ltd – $1.49m, one department
Shane Fields, 50, is the NSW-based founder and managing director of Fields Group Pty Ltd, which is billed as Australia’s “security intelligence expert”. The company, founded in January 2011, focuses on corporate safety.
CRC – $1.45m, one department
Dr Michele Allan is chairwoman of CRC, which is a consortium of universities and other research organisations that provides advanced IT services and “intelligent” satellite systems. Victoria-based Dr Allan, 66, holds various directorships.
Professor Andy Koronios, 69, the company’s chief executive was most recently Dean of Industry & Enterprise at the University of South Australia after 15 years as its Head of the School of Information Technology & Mathematical Sciences.
Sooty Black Transport Pty Ltd – $1.38m, one department
Adelaide Hills-based Graham Black, 38, along with Nicola Black, 35, are co-directors of Sooty Black Transport Pty Ltd, which trades as Figure 8 Contracting. The company undertakes both regional and metropolitan fencing, yard building, earth works, providing solar pumps, frames, pipelines and troughs.
Industry Fund Services Ptd Ltd – $1.3m, one department
Felicity Pantelidis is chairwoman Industry Fund Services Ptd Ltd, a profit-to-member super funds that has operated since 1994. Ms Pantelidis, 50, holds several directorships and is deputy chief executive at Maurice Blackburn Lawyers in Melbourne.
Csaba Baranyai, 39, is Victorian-based IFS chief executive officer, who has worked in the financial services industry for more than 20 years.
Aurecon Australasia Pty Ltd – $1.297m, five departments
BDO Services Ptd Ltd – $1,297m, 12 departments
Rudolph “Rudy” Pieck, is managing partner, SA, and chairman of its partners for BDO Services Pty Ltd, which is part of an international network of public accounting, tax, consulting and business advisory firms. A “revered tourism expert and wine connoisseur”, Mr Pieck, 55, has more than 35 years experience in public practice – 24 of which he’s served with BDO.
DXC Technology Australia – $1.29m, two departments
KBR – $1.23m, one department
Stuart Bradie, 57, is the global president and chief executive of KBR, formerly Kellogg Brown & Root, which he joined in 2014 after more than 30 years industry experience. The mechanical engineer leads the global company from its headquarters in Houston, Texas and Leatherhead, Surrey, southwest of London.
ZED Management Consulting, $1m, one department
Jonathan Cherian, 39, is managing director of ZED Management Consulting, which was founded than 15 years ago, according to its website. The company has more than 20 consultants, who focus on five areas including health, aged and disability care, education or Indigenous organisations.
Pam Zervas, 58, has been a director of ZED Consulting since the beginning when she co-founded the business in 2006, according to company records. Her online CV says she has more than 15 years’ experience within the SA public service.
Opex Nominees – $1.1m, one department
More Coverage
Michael Roberts, 54, founded Opex Nominees in March 2019, company records show. North Adelaide-based Mr Roberts has more than 20 years experience in business and provides help in construction, manufacturing, government, mining, oil and gas as well as defence.
Deloitte Risk Advisory – $1.16m, five departments
Stephen “Steve” Jansz, aged in his 50s, is managing partner of Deloitte Risk Advisory. Mr Jansz, who has more than 20 years consulting experience including extensively across government, after he started with the former accounting firm Arthur Anderson.
PwC hit by new tax row fallout
This has occurred despite assurances the SA practice was not enmeshed in the row.
Embattled “big four” firm PricewaterhouseCoopers, which was embroiled in a confidential information outrage, billed taxpayers almost $4.8m for 11 state government contracts last financial year.
The firm, which is subject of a multi-country Australian Federal Police investigation over the leaks imbroglio, gave paid help to departments, including Premier and Cabinet, Education, Energy and Mining, Attorney-General, as well as Trade and Investment.
It also audited Treasury's internal books, while providing other “checks and balance” advice, along with other external work for SA Health, Renewal SA, Housing Trust, Country Fire Service and office for the Office of the Commissioner for Public Sector Employment.
But amid more scrutiny on consultant firms, PwC has been removed from the state government's preferred audit and financial services supplier panel, meaning it can't be considered for SA taxpayer work.
PwC was forced to sell its government consultancy business - valued at up to $1bn that employed more than 1750 people - for $1 to private equity operator Allegro Funds last year after a former senior tax consultant leaked to clients and partners confidential details obtained in government work.
Up to 30 partners and staff were involved.
In November last year, Scyne Advisory was born from the Allegro fire sale, with 100 PwC staff in SA moving, including Adelaide chief, former Liberal federal minister Jamie Briggs.
Scyne, which employs more than 1000 former PwC staff nationwide, has since successfully tendered for contracts with the Transport Department, SA Health and ReturnToWorkSA.
At the height of the scandal in May last year, Treasurer Stephen Mullighan sought assurances about access to SA government data. He said PwC had assured its SA practice was not tangled in the tax row.
Treasury also demanded “robust” steps at other professional services firms.
Mr Mullighan's spokeswoman revealed “PwC has been removed from the across government Audit and Financial Services supplier panel” in November last year. “Following the split in services, Scyne Advisory has been included in the supplier panel,” she said.
“However (it) cannot provide taxation advice, financial statement audits, or any services requiring an Australian Financial Services Licence.”
Mr Briggs, Scyne's national spokesman, said given the legacy of the business, former Federal Court judge Andrew Greenwood “undertook a rigorous investigation” of every staffer to ensure no scandal link.
PwC Adelaide managing partner Julian McCarthy declined to comment, as did a firm spokeswoman.