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Department of Finance’s “Review” Enables PwC Australia’s Partners to Profit from Taxpayer Contracts
Department of Finance Greenlights PwC Australia’s Profits from Taxpayer Contracts
In a secretive move, the Department of Finance has given the green light for PwC Australia’s partners to unlock profits from millions of dollars of taxpayer contracts through their Indigenous consulting business. The review by the Department of Finance has paved the way for the sale of PwC’s Indigenous Consulting (PIC), which has received over $45 million in federal government contracts since 2013.
PIC CEO Gavin Brown has confirmed that the business has never declared or paid a dividend, meaning the profits from the government contracts will flow to PIC’s owners upon sale. The ownership structure of PIC, with 49% owned by PwC Australia’s partners, has allowed the business to secure limited tender federal contracts intended for small Indigenous businesses.
Despite the ongoing PwC tax leaks scandal, Finance has given the all-clear for PIC to continue engaging with the Commonwealth. This decision comes just days before a detailed Senate report on PwC was set to be released, raising questions about the timing of the greenlighting of PIC.
Finance Secretary Jenny Wilkinson, who is overseeing the Commonwealth’s response to the PwC scandal, has refused to explain the decision to greenlight PIC. The government has also given Finance the responsibility of managing the response to the scandal and determining whether PwC Australia will be awarded contracts again.
Despite claims that PIC is separate from PwC, the business shares many similarities with its parent company, including its name, location, and website. The value of PIC remains unclear as the entity is not required to file annual accounts, raising concerns about transparency.
With ongoing investigations into PwC Australia’s involvement in the tax leaks scandal, the decision to greenlight PIC and potentially resume contracts with PwC has sparked controversy. The future of PIC and its ownership remains uncertain as PwC seeks buyers for its stake in the business.
