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Conflict concerns after Deloitte awarded uni merger contract

EXCLUSIVE: Consulting firm Deloitte has been awarded a contract to manage the South Australian university merger, sparking concerns about potential conflict of interest.

Oct 04, 2023, updated Oct 16, 2023
Deloitte will play a key role in managing the merger of the University of Adelaide and UniSA. Left and centre photo: Tony Lewis/InDaily. Right photo: Dan Himbrechts/AAP

Deloitte will play a key role in managing the merger of the University of Adelaide and UniSA. Left and centre photo: Tony Lewis/InDaily. Right photo: Dan Himbrechts/AAP

InDaily learned this week that the University of Adelaide has briefed some staff that Deloitte has been appointed as an “integration and transformation partner” for the proposed merger with the University of South Australia. 

The contract, understood to be after a procurement process spanning three months and worth millions of dollars, will see senior Deloitte staff join the merger’s “Integration Management Office” on North Terrace to work on developing the new Adelaide University. 

It comes after the chief executive of Deloitte Asia-Pacific, David Hill, left the University of Adelaide’s governing council in August this year.

Hill, a former deputy chancellor, had been a council member since January 2014, according to his LinkedIn, and has been with Deloitte since 1995. 

He voted to support the merger at the university’s governing council meeting on June 29, according to minutes of the meeting released to InDaily via freedom of information and other people familiar with the matter.  

In response to questions from InDaily, the University of Adelaide and Deloitte confirmed today that Deloitte had been awarded the contract. Both said the firm won the tender through a “rigorous” process which had been subject to high probity standards. Deloitte said any suggestion Hill was conflicted was “wrong and misinformed” and that he had not been involved in the winning bid.  

InDaily understands the tender process for the contract happened after the university voted to support the merger.

The union representing University of Adelaide staff has raised concerns about Deloitte’s appointment and whether it constituted a conflict of interest.

The National Tertiary Education Union (NTEU) SA division wrote to University of Adelaide chancellor Catherine Branson on Tuesday, asking a series of questions about the process used to appoint the consulting firm.

In particular, it asked what information Deloitte might have had about the merger before the tender process had begun.

InDaily asked the University of Adelaide if it rejected any notion that awarding a contract to Deloitte could constitute a conflict of interest given Hill’s previous position on the council. 

In response, a spokesperson said in a statement: “Deloitte was identified through a rigorous tender and application process supported by an external procurement specialist and independent probity advisory firm.

“Every aspect of the process was subject to the highest standards of probity and the individuals involved were subject to individual probity management plans. The final selection was made by a procurement and approval panel especially established for the purpose.

“Deloitte were unanimously appointed as the Integration and Transformation Partner and will work in collaboration with expert staff from both the University of South Australia and the University of Adelaide.”

The University of Adelaide did not respond to questions about when and why Hill left the governing council or how much the Deloitte contract is worth. 

InDaily sent a similar list of questions to Deloitte.

A spokesperson for the consulting firm said: “The suggestion that David Hill’s position on the University of Adelaide Council and as Deloitte Asia Pacific CEO created a conflict of interest in relation to Deloitte’s appointment as Transformation and Integration Partner is wrong and misinformed.

“The selection and appointment process of the Transformation and Integration Partner followed a rigorous process based on the highest probity standards and was conducted independently by a third party engaged by the two Universities.

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“Mr Hill had no involvement with the evaluation of proposals or the decision to appoint Deloitte. Mr Hill was not involved with Deloitte’s proposal and will not have any involvement with the work to be completed by Deloitte Australia.”

The two merger universities have been reluctant to publicly reveal any details about the involvement of consultants in developing the business case for the merger, telling InDaily earlier this year this information is commercial in confidence.  

In a response published last month to a question on notice from Greens MLC Tammy Franks, the universities declined to name the consulting companies appointed to carry out the merger feasibility studies, only referring to a “range of additional external (commercial services) expertise”. 

University of Adelaide and University of South Australia buildings on North Terrace

The Malinauskas Government has committed $444.5 million to support the merger of the University of Adelaide and UniSA. Photo: Tony Lewis/InDaily

Deloitte has other relationships with the University of Adelaide, including a program called “The Academy by Deloitte” in which the consulting firm offers work experience and paid internship opportunities to University of Adelaide students and co-delivers undergraduate elective courses. 

Deloitte has won the integration contract before parliament votes on the legislation required to establish the new Adelaide University. It remains unclear whether the Upper House will support or block the merger.  

The appointment of a consulting firm in September to lead the Integration Management Office (IMO) was flagged by the two merger universities in their summary transition plan released in July.

The transition plan stated that the IMO would be “led by an external implementation partner with a proven record of delivering successful integrations of substantial complexity”. 

The IMO, according to the transition plan, will consist of seconded university staff “augmented by non-sector experts (sourced from an integration partner)”.  

“This combination of expertise will build capability within Adelaide University across change management, business process improvement and complex project management, ensuring the university is set up for success into the future,” the transition plan states.

The Malinauskas Government, which is committing $444.5 million towards the merger, wants to pass legislation before the end of the year so the newly merged institution can open in January 2026. 

The vice-chancellors of the University of Adelaide and UniSA, Peter Høj and David Lloyd, are due to appear before a parliamentary inquiry into the merger this afternoon. 

It is the last scheduled public hearing of the merger inquiry before the committee is due to deliver its report on October 17. 

Earlier this year, InDaily revealed that consulting firm Accenture was appointed to work on developing UniSA’s feasibility assessment for the merger. 

Accenture has an existing partnership with UniSA through an “Innovation Academy” where students can take a bachelor of digital business degree co-designed by Accenture and UniSA.

InDaily asked UniSA in August whether it contemplated if this existing partnership could raise a conflict of interest. In response, a spokesperson said at the time: “UniSA has rigorous procurement processes that consider risks and any potential, actual or perceived conflicts of interest.

“The University has worked with a number of consultants and external partners in developing its industry focussed programs and always considers potential conflicts of interests.”

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