PwC woes worsen as $216 billion Australian fund joins boycott
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Australia’s second-largest pension fund has joined the boycott of PwC as fallout of the firm’s tax evasion scandal spreads.
PHOTO: REUTERS
Melbourne - Australia’s second-largest pension fund has joined the boycott of PricewaterhouseCoopers (PwC) as the fallout of the embattled accounting firm’s tax evasion scandal spreads.
Australian Retirement Trust, which manages A$240 billion (S$216 billion) for 2.2 million members, “will not be undertaking any new contracts with PwC at this time”, a spokesman told Bloomberg in an e-mailed statement.
The action, following similar moves by industry giant AustralianSuper and a slew of government entities since last week, is the latest sign of the costly fallout caused by revelations that PwC’s Australia unit used confidential government tax policy information to advise its global clients.
PwC stands to lose millions of dollars in revenue as clients review their relationship with the accounting agency. The firm describes itself as an “active participant” in Australia’s A$3.4 trillion pension sector, known locally as superannuation, according to its website.
PwC did not respond to a request for comment.
On Monday, the Australian Securities and Investments Commission said its contracts with PwC were also under review, while the Reserve Bank of Australia last week said it would not enter into any contracts with PwC until the issues had been resolved.
PwC this week said it had identified 76 current and former partners associated with the scandal and that names have been handed to Australian lawmakers.
Nine senior partners were put on leave last week, and PwC has appointed independent directors to its board. A review is being conducted into its governance and culture, which is due in September. BLOOMBERG
