An independent review has concluded that PricewaterhouseCoopers (PwC) Australia operated an “overly collegial” culture following a tax leak scandal implicating its employees.
In May, PwC Australia commissioned Ziggy Switkowski AO, a former CEO of Australian telecoms group Telestra, to conduct an independent review of governance, culture and accountability into the firm.
The review determined that PwC partners had dismissed rule-breaking by so-called “rainmakers”. Switkowski said: “Some rainmakers were described as the ‘untouchables’ or individuals to whom ‘the rules don’t always apply’.”
Law firm Linklaters conducted a probe into the consultancy’s Australia arm after one of its partners, an adviser to the government, was found to have leaked information about upcoming tax changes to other employees.
Employees at the consultancy firm were accused of using the inside information for business purposes. However, an investigation by Linklaters “found no evidence that any PwC personnel outside of Australia used confidential information from PwC Australia for commercial gain”.
According to reports, Linklaters cleared PwC’s partners overseas of using confidential information “for commercial gain”. However, six of its employees were found culpable of not asking further questions about the tax data.
PwC said in a statement on its website on Wednesday that most of the international employees who received inside tax information “did not know the information was confidential”.
“The review found that six individuals should have raised questions as to whether the information was confidential. To the extent that they are still with PwC, their firms have taken appropriate action,” the statement said.
PwC Australia posted a statement entitled ‘Commitments to Change’ on Wednesday, alongside a statement from PwC Australia’s chief executive Keith Burrowes that read: “We are sorry. We take full accountability for our shortcomings and the culture in our firm that allowed them to go unchecked over time. From the top down, we are committed to rebuilding and re-earning the trust of our stakeholders. We are committed to learning, changing, and leading. This is our promise to our people, our partners, our clients and our communities.”
PwC’s global chair Bob Moritz also said: “The unauthorised sharing of confidential information and related leadership failings are completely unacceptable and go against PwC’s culture and values.”
An ongoing Senate inquiry into the constultancy over the tax leaks is in progress in the United States.
Senator Barbara Pocock, who instigated the probe, said: “The statement from PwC’s global chair Bob Moritz fits neatly into the damage control strategy the firm has relied on to quell the international outrage at this fiasco.”