Fri. Nov 22nd, 2024
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Embattled consulting firm PwC Australia has named and booted eight senior partners linked to the use of confidential Treasury briefings.

The scandal involved a senior partner using secret information about government plans to tax multinational companies, working out a way to get around them and selling the plan to those companies, making millions of dollars in fees.

But the fallout has been severe. Last week the firm revealed it would sell off the part of the business that deals with state and federal government contracts to a private equity firm for $1.

With the federal government — the firm’s biggest client — furious about the double-dealing, it was unlikely to land more of the contracts that have seen it net more than $500 million in fees in just the past two years.

Internal investigation finds ‘failure of leadership’ 

The action comes as PwC Australia concludes an internal investigation into what it calls the “handling of confidential Treasury information and past failures in professional, ethical or leadership responsibilities”.

The assessment of former management, in a media release from the firm, is scathing.

“The investigation identified a failure of leadership and governance to adequately address the matters, either at the time or whilst the matters were under investigation by the Tax Practitioners Board or Australian Taxation Office,” it says.

“This enabled poor behaviours to persist with no accountability.”

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Former chief executive Tom Seymour had already already stood down, but is named with seven others who are leaving the firm including the former chief risk officer Sean Gregory.

Seymour was set to leave in September. The release notes “Tom Seymour’s recommended exit is earlier than his previously announced retirement date”.

Dozens more names involved

Also going, Peter Konidaris and tax partner Eddy Moussa whose actions “failed to meet their professional responsibilities”. Richard Gregg has been given notice of of the findings against him and a process has started to remove him from the partnership.

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