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PricewaterhouseCoopers has appointed a senior partner from its global network to lead its scandal-hit Australian business, deepening its grip on the local firm in a bid to rebuild its reputation.
PwC veteran Kevin Burrowes, PwC Networks Global Clients and Industry Practice Leader, will relocate to Australia from Singapore to take over local partnerships. He will succeed Kristin Stubbins, who took over as interim chief executive after Tom Seymour stepped down less than two months ago .
“Kevin’s experience in other parts of the PwC network ensures that he brings a fresh perspective to the firm when he takes over the leadership of Australia, and he will work with colleagues and the management team to re-engage PwC Australia stakeholders trust,” said Justin Carroll, Chair of PwC Australia’s Corporate Governance Committee.
The adviser has been at the center of a scandal in Australia after a senior partner in its tax practice leaked confidential government information about a crackdown on multinational tax avoidance schemes to colleagues in Australia and overseas.
The partner at the center of the scandal, Peter Collins, was banned by the industry watchdog in February, but the tax leak scandal remains in the spotlight after Australian senators released emails showing PwC used the information to win business Focus. The Australian government has banned PwC from competing for new business with a range of public and private sector organisations, pending the completion of a review. The matter has been handed over to the police for investigation.
PwC Australia also agreed last week to sell its government advisory business to private equity firm Allegro Funds for A$1 ($0.66).
The deal, due to close next month, means PwC will exit all Australian government advisory work, which accounts for about a fifth of its revenue in the fiscal year to 2023. Approximately 1,750 employees will transfer to an Allegro-owned business unit, which will sever ties with Allegro. PwC brand.
Burrows’ appointment and exit from the government advisory business are the most significant moves by PwC’s global business since the crisis first erupted.
PwC, like the other Big Four, is an alliance of local member firms. The model is intended in part to limit any financial loss or legal liability within each country, but the seriousness of the situation in Australia and evidence that tax information is used abroad raises it to an international concern.
Bob Moritz, global chairman of PwC, said Burrows is an expert on global network governance structures and standards.
“Under past leadership, PwC Australia failed to meet the network’s ‘code of conduct’ and uphold the network’s professional standards and values. Its past conduct is not representative of PwC’s work and conduct globally, I am deeply sorry to our customers, wider stakeholders and our employees,” Moritz said.
“PwC Australia has a lot of work to do and I believe the steps they are taking with the support of this network will make the firm stronger,” he said.