Isolate CBDS

Breaking News & Top Stories


Australia’s biggest pension fund freezes new business with PwC over tax scandal

Australia’s largest superannuation fund has mentioned it is not going to signal any new contracts with PwC because the consulting agency grapples with the fallout from a tax scandal in one in every of its greatest markets.

AustralianSuper, which has nearly 3mn members and A$290bn ($191bn) of belongings beneath administration, mentioned on Friday that it could freeze any new work with the Massive 4 agency and evaluation an audit contract later this 12 months.

“AustralianSuper is anxious with the continued revelations round PwC and because of this has frozen any new contracts with PwC,” mentioned a spokesperson for the fund. AustralianSuper had expressed these issues “on the highest degree” to PwC final week, he added.

PwC has been beneath intense public scrutiny over the previous month after the discharge of emails exhibiting it had used confidential details about modifications to tax legal guidelines from the federal government to win new enterprise.

It suspended 9 companions this week pending the result of an investigation in September because it moved to ease the impression of a scandal that has engulfed its Australian and worldwide operations.

An growing variety of firms in Australia, one in every of PwC’s largest markets, are reviewing their relationship with the advisor following the confidentiality breach.

AustralianSuper is the newest organisation to place restrictions on PwC following the scandal. The Reserve Financial institution of Australia mentioned on Wednesday it could not give new enterprise to the agency pending the result of the evaluation. Treasury officers have additionally mentioned the moral behaviour of consultants would now should be taken under consideration when procuring new contracts.

AustralianSuper, which is partly owned by the Australian Council of Commerce Unions, mentioned it spent greater than A$2mn with PwC final 12 months.

PwC’s administration will seem in entrance of the senate in Canberra subsequent week to reply questions over the scandal. The agency is predicted to come back beneath extra stress to launch the names of the companions concerned in using the confidential info and any purchasers that benefited from the tax recommendation.

The federal government, which has referred the matter to the police to contemplate legal motion, has mentioned the onus is on PwC to persuade it that the corporate’s inside evaluation and the resignation of any companions concerned within the scandal are enough redress for it to renew working with the general public sector.