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

Australia’s largest superannuation fund has stated 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 virtually 3mn members and A$290bn ($191bn) of belongings beneath administration, stated on Friday that it will freeze any new work with the Huge 4 agency and evaluation an audit contract later this yr.

“AustralianSuper is worried with the continuing revelations round PwC and in consequence has frozen any new contracts with PwC,” stated a spokesperson for the fund. AustralianSuper had expressed these issues “on the highest stage” 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 adjustments 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 influence of a scandal that has engulfed its Australian and worldwide operations.

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

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

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

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 return beneath extra stress to launch the names of the companions concerned in using the confidential data and any purchasers that benefited from the tax recommendation.

The federal government, which has referred the matter to the police to think about felony motion, has stated 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 adequate redress for it to renew working with the general public sector.

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