A Federal Court case involving Woolworths reveals internal tensions over consultancy expenses. At the centre of the matter is a $13.5 million payment made to transformation consultancy Adaptovate, surpassing the $5 million budget set for a two-year period. The payment forms part of a legal case brought by a senior executive, raising questions about procurement processes, workload pressures and possible conflicts of interest within the organisation.
This development comes as Woolworths carries out extensive transformation programs, with consultants brought in to assist with internal change initiatives. Adaptovate was engaged in 2021 to support agile business transformation strategies. However, by 2023, internal concerns grew over the firm’s rising invoice totals and the management of its contract.
Court documents show Woolworths paid Adaptovate $13.5 million over two years, nearly three times the agreed budget. These payments were reportedly made after the contract had expired and without going through a formal request for proposal process. Furthermore, the consultancy appears to have signed off on its own invoices, potentially breaching the company’s procurement policies. Former and current staff identified Adaptovate as a high-risk vendor and raised concerns about connections between the consultancy and members of company leadership.
Beyond the legal claims, the case points to a broader issue concerning unchecked consultancy costs and unclear procurement practices at Woolworths. It also brings into focus how previous relationships between executives and external firms could influence procurement decisions. Although no legal conclusion has yet been reached, the matter may lead to wider reviews of contract management and oversight in corporate Australia.
