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Resumption of Federal Contracts for PwC Australia Raises Ethical Concerns
The federal government has made a surprising decision to potentially resume giving contracts to PwC Australia, despite the company’s much-publicized divestment of its government business last year. The Finance Department has signed a mutual agreement with PwC Australia, stating that the company will not bid for any new Commonwealth work until at least December 1, 2024.
This news comes as a shock to many, as PwC Australia was previously issued an open-ended ban in May last year amid a tax leaks scandal. In response to the ban and public outrage, PwC Australia divested its government business to Allegro Funds, which rebranded the business as Scyne Advisory.
Despite these actions, the Finance Department has now indicated that PwC Australia could potentially receive taxpayer funds before Christmas. The department has also engaged in an examination of PwC Australia’s ethical soundness and will provide an update on December 1.
The procurement note, dated April 30, coincides with PwC Australia engaging a lobbyist firm run by two former senior ALP staffers. This development raises questions about the government’s decision to potentially resume contracts with PwC Australia.
The Senate inquiry into consultancies issued a highly critical interim report in March, highlighting ongoing problems at PwC, including a failure to genuinely change and a cover-up of the tax leaks scandal. Despite these findings, federal agencies have continued to give contracts to PwC’s Indigenous arm, PwC’s Indigenous Consulting.
Finance has separately reviewed PwC’s Indigenous Consulting and deemed it appropriate for the Commonwealth to continue engaging with the company. However, the decision to potentially resume contracts with PwC Australia raises concerns about the government’s commitment to ethical procurement practices.
As investigations into the tax leaks scandal continue, the government’s decision to potentially resume contracts with PwC Australia has sparked controversy and calls for greater transparency in government procurement processes.
