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

Australia’s biggest superannuation fund has said it will not sign any new contracts with PwC as the consulting firm grapples with a tax scandal in one of its biggest markets.

AustralianSuper, which has nearly 3 million members and $290bn ($191bn) in assets under management, said on Friday it would halt any new work with the Big Four firms and would sign an audit contract later this year. Will review.

A spokesperson for the fund said, “AustralianSuper is concerned by the ongoing revelations surrounding PwC and has consequently put on hold any new contracts with PwC.” He said AustralianSuper had conveyed those concerns to PwC “at the highest level” last week.

PwC has been under intense public scrutiny over the past month, following the release of emails showing it used confidential information about changes to tax laws from the government to win new business.

It suspended nine partners this week pending the outcome of an investigation in September as it moved to play down the impact of the scandal that has engulfed its Australian and international operations.

A growing number of firms in Australia, one of PwC’s biggest markets, are reviewing their relationships with the advisory following a privacy breach.

AustralianSuper is the latest organization to ban PwC following the scandal. The Reserve Bank of Australia said on Wednesday it would not award new business to the firm pending the outcome of the review. Treasury officials have also said that the ethical behavior of consultants must now be taken into account when procuring new contracts.

AustralianSuper, which is partly owned by the Australian Council of Trade Unions, said it spent more than A$2mn with PwC last year.

PwC’s management will appear before the Senate in Canberra next week to answer questions on the scandal. The firm is expected to come under more pressure to release the names of partners involved in the use of confidential information and any clients who may have benefited from the tax advice.

The government, which referred the matter to the police for consideration of criminal action, has said that PwC has a duty to assure that the company’s internal review and the resignation of any partner involved in the scandal are sufficient to resume working with it. adequate redress. public area.