PricewaterhouseCoopers (PwC) Australia is putting nine senior partners on leave and appointing independent directors to its board as the embattled firm seeks to claw back confidence in the wake of a tax scandal.
The company plans to ring-fence business conducted with Australia’s government to minimize conflicts of interest and boost governance, it said in a statement yesterday.
The chairs of its governance board and its designated risk committee also stepped down from their respective roles.
Photo: AP
“We are announcing these actions today, despite the fact that our investigation continues, because we recognize that our stakeholders want more transparency in order to restore confidence in our firm,” PwC Australia acting CEO Kristin Stubbins said.
PwC has been under fire following revelations that one of its former tax chiefs obtained secret information during his time working as an adviser to the government, and then leaked it to his colleagues who used it to shop tax-planning advice to global customers.
“We recognize that enhanced governance, structures and controls are necessary, and the decision to ring-fence our Federal government business is a critical next step,” Stubbins said.
Earlier this month, Ziggy Switkowski, a former telecommunications executive, was appointed to lead an independent review into the firm’s governance and culture.
Stubbins said the full report and its recommendations would be published when the review concludes in September.
PwC did not name the partners being put on leave.
Then-PwC Australia CEO Tom Seymour and two other executives stepped down earlier this year after e-mails dating from 2014 to 2017 were made public following demands from the Australian parliament, albeit with names redacted.
The nation’s police force last week opened an investigation into the matter.
Australian Prime Minister Anthony Albanese was yesterday asked whether the names of all PwC partners who had access to confidential tax information should be publicly released.
“All of this should become public at the appropriate time. Of course, there are investigations under way and I don’t want to say anything to interfere with those processes, but quite clearly what went on there is completely unacceptable,” Albanese said on 2SM radio.
In a separate letter, Stubbins yesterday apologized on behalf of her firm for “betraying the trust placed in us.”
“I have worked at PwC for my whole career, and this has been personally and professionally devastating for me and my colleagues at PwC,” she said.
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