PwC Global takes control of Australia arm, replaces CEO
Sign up now: Get ST's newsletters delivered to your inbox
The Australian arm of PwC has been under pressure following revelations that a former senior partner obtained confidential tax policy information while advising the government and the firm then used it to advise global clients.
PHOTO: REUTERS
SYDNEY– PricewaterhouseCoopers’ (PwC) global leaders have seized control of the Australia unit at the centre of a tax scandal
Mr Kevin Burrowes will relocate to Sydney from Singapore to take over as chief executive from Ms Kristin Stubbins, the AFR reported on Sunday, citing Mr Justin Carroll, chairman of the firm’s governance board. Ms Stubbins has been acting in the role for almost seven weeks, the report said.
The firm is planning to sell off its government consulting arm to private equity investor Allegro Funds for just A$1 (90 Singapore cents), the AFR said in a separate report on Sunday, citing the company. About 130 PwC Australia partners and up to 2,000 employees from the government consulting arm will move to a new company, codenamed Bell, the report said.
The Australian arm of the global consulting giant has been under pressure following revelations that a former senior partner obtained confidential tax policy information while advising the government and the firm then used it to advise global clients. The firm stands to lose millions of dollars in revenue due to its breach as clients review their relationship with the consultant.
The proposed sales to Allegro would mean PwC stopping all of its government advisory work at both the state and federal levels, the AFR said.
Mr Burrowes’ most recent role was as the firm’s global clients and industries leader, AFR reported. BLOOMBERG
