PwC veteran parachutes in to run scandal-hit Australian arm

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PwC has appointed a senior partner from its global network to lead its scandal-hit Australian operation, deepening its control over the local company as it seeks to rebuild its reputation.

Kevin Burrows, a PwC veteran and head of the PwC Network’s global clients and industries business, will move from Singapore to Australia to lead the local partnership. He will replace Kristin Stubbins who stepped down as interim chief executive less than two months ago after Tom Seymour stepped down.

“Kevin’s experience in other parts of the PwC network ensures that he will bring a fresh perspective to the firm as he takes over leadership in Australia, and he will work with his colleagues and management to re-earn trust with PwC Australia’s stakeholders. Will work with the team.” said Justin Carroll, Chairman of the Governance Board of PwC Australia.

The consultant is at the center of a scandal in Australia after it emerged a senior partner in his tax practice leaked confidential government information to colleagues in Australia and overseas about plans to crack down on tax evasion by multinationals .

Peter Collins, the partner at the center of the scandal, was banned by the industry watchdog in February, but the tax leak scandal remains in the spotlight after Australian senators published emails showing the information was used by PwC to win business. was done for. The Australian Government has barred PwC from competing for new business from a number of public and private sector organizations until a review is completed. He has also sent it to the police for investigation.

PwC Australia also last week agreed to sell its government consulting business to Allegro Funds, a private equity firm, for A$1 (US$0.66).

The deal, which is due to close next month, means PwC will exit all government advisory work in Australia, which accounts for about a fifth of its revenue for financial year 2023. About 1,750 people will transfer to the Allegro-owned operation, which it will sever ties with. PwC Brand.

Burroughs’ appointment and exit from the government consultation is the most significant step taken by PwC’s global business since the crisis first broke out.

PwC, like the other Big Four groups, is structured as a coalition of locally owned member firms. The model is designed to partially mitigate any financial losses or legal liabilities within each country, but the seriousness of the Australian situation and evidence that tax information was used outside the country has turned into an international issue.

Bob Moritz, global president of PwC, said Burroughs was an expert on the governance structures and standards of the global network.

“Under previous leadership, PwC Australia failed to meet the Network’s ‘Code of Conduct’ and uphold the Network’s professional standards and values. Its past actions do not represent PwC’s work and practices around the world and I am deeply sorry to our clients, our wider stakeholders and our people, Moritz said.

“PwC Australia has important work to do and I am confident that the steps they are taking, with the support of the network, will result in a stronger company,” he added.