PwC is one of the world’s largest auditing firms. Karl F. Schöfmann/imagebroker via picture alliance
The global leadership of auditing firm PwC is coming under pressure in the scandal surrounding its Australian subsidiary.
Its former CEO told a Senate hearing that it was “difficult to accept” that there had only been consequences for Australian partners, not for global partners.
Last year it became known that PwC Australia had passed secret government information on corporate taxation to those same companies in order to secure consulting contracts.
The image of the auditor PwC has been severely damaged by the Evergrande scandal, and not just in China. Last year, the Australian branch of the Big Four company was already embroiled in a scandal – which is now increasing the pressure on the global management team.
What had happened? The Australian branch of the auditor and management consultant had passed on secret government information to companies. More specifically, the Ministry of Finance wanted to tax companies like Google and Uber more heavily. PwC had a consulting mandate there – and disclosed the plans in advance to its other clients like Google and Uber.
The major law firm Linklaters investigated the case – and in Australia, several partners who had used the information were identified and had to leave the firm.
Linklaters report was never published
But the Linklaters report was never published. And the former Australian head of PwC finds it “difficult to accept” that local Australian PwC employees who had passed on information were identified – while partners at a global level who had also used the information were not. He explained this to a Senate committee, as die „Financial Times“ (FT) reports. According to the FT, PwC is now under pressure to name international partners.
However, he also made it clear that international partners – such as some employees in Australia – may not have known that the information was confidential.
According to the FT, the Senate hearings on the scandal have so far revealed a corporate culture that put performance and profits above everything else. Aggressive growth plans have completely overshadowed values and goals.
