Australia’s largest pension fund has announced it will not enter into a new deal with PwC as the consulting firm deals with the impact of a tax scandal in one of its largest markets.
australian supermarketThe company, which has about 3 million members and A$290 billion (about $191 billion) in assets under management, said Friday it would freeze new work with Big Four and review audit contracts later this year.
A spokeswoman for the fund said: “Australian Super is concerned about the ongoing revelations surrounding PwC and as a result has frozen any new contracts with PwC.” Australiansuper expressed these concerns to PwC “at the highest level” last week, he added.
PwC The company has come under intense public scrutiny over the past month after an email was released showing it used confidential government information about tax changes to win new business.
that 9 partners suspended The company is moving to mitigate the impact of a scandal involving its Australian and overseas operations, and this week will wait for the results of the September investigation.
In Australia, one of PwC’s largest markets, a growing number of companies are reassessing their relationships with consultants following a confidentiality breach.
Australiansuper is the latest organization to impose restrictions on PwC following the scandal. The Reserve Bank of Australia announced on Wednesday that it would not offer the company new business pending the outcome of its review. Finance officials also said the ethical behavior of consultants must be considered when procuring new contracts.
Australian Super, partly owned by the Australian Trade Union Council, said it spent more than A$2 million on PwC last year.
PwC management is scheduled to appear before the Senate in Canberra next week to answer questions about the scandal. The company is expected to come under further pressure to disclose the names of partners who have been involved in the use of confidential information and clients who have benefited from its tax advice.
the government, reported the matter to the police PwC said it has a responsibility to convince PwC that its internal investigation and the resignation of a partner involved in the scandal will be sufficient relief to resume cooperation with the public sector in considering criminal proceedings.
