PwC Australia has warned staff may be forced to exit as a result of its internal investigation into confidential tax leaks, run by corporate veteran Ziggy Switkowski.
In a statement shared on Monday afternoon, PwC also said its former chief executive Tom Seymour would retire from the partnership in September, after stepping down from the top job last week.
The announcements come as PwC faces a growing storm over the firm’s handling of leaked confidential tax information, that has seen two partners quit the firm’s board and its lead tax practitioner banned by the regulator.
The Tax Practitioner Board found PwC partner Peter-John Collins took confidential information from meetings with the government and shared it within the firm to shape strategies that could be sold to clients to minimise their tax take.
PwC had attempted to head off criticism, with Mr Seymour announcing a review two weeks ago.
The firm has also brought in international law firm Linklaters to run the global portion of PwC’s review into the scandal, separate to the Australian inquiry.
Dr Switkowski will lead the Australian investigation, which PwC has said will be independent, into the firm’s leak of the tax information, as well as a broader cultural review of the partnership.
The move to bring in the veteran corporate executive, who led the National Broadband Network and briefly chaired the troubled gambling Crown Resorts, comes after PwC announced an investigation into its failures two weeks ago.
Mr Seymour resigned from the top job on Monday last week, with PwC sources reporting he was negotiating his exit.
PwC said Mr Seymour would formally retire from the partnership on September 30 this year “to enable an orderly transition”.
PwC said Dr Switkowski “will begin work immediately”, with his findings to be presented to the firm in September 2023.
Dr Switkowski will “consider all aspects of PwC Australia’s governance, accountability and culture, including how the firm applies its professional values and ethical standards across its work”.
“It will examine the way in which partners and staff are held accountable for their responsibilities, as well as assess the values and behaviours that exist at all levels within the firm,” a PwC spokesman said.
The review is understood to have no limitations to its scope.
Ziggy Switkowski will lead the investigation into the culture at PwC. Picture: John Feder
PwC stopped short of saying it would release the full report, noting it would only share a “summary of these key recommendations to ensure transparency”.
However, a PwC spokesman said the firm would “not hesitate to take the recommended actions”.
This could see PwC “where appropriate, exiting further people and partners from the firm” according to the company’s statement.
Emails shared with parliament suggest as many as 49 PwC partners and staff were aware of the scheme.
“The independent review will look at the way in which decisions are made and overseen within PwC, including how financial goals, values and strategic objectives are balanced and prioritised,” a PwC spokesman said.
PwC acting CEO Kristin Stubbins said the firm was “committed to learning from our mistakes and ensuring that we embrace the high standards of governance”.
“Dr Switkowski will have access to all the people and information he needs to conduct a rigorous and robust review. We look forward to receiving his report and acting swiftly on its recommendations,” she said.
Dr Switkowski did not respond to attempts to contact him.
PwC has spent the last few weeks under siege, with several members of PwC’s global senior executive team flying to Australia to get to grips with the growing crisis.
The firm has also faced growing parliamentary criticism and regulatory attention, with concerns PwC’s lucrative contracts with the government may be in jeopardy.
The corporate regulator has also confirmed it has opened a file on the tax leak scandal.
A parliamentary inquiry into the use of consultants in government is expected to call several current and former PwC staff to appear and explain the leak.
Greens senator Barbara Pocock, who pushed for the inquiry, said Dr Switkowski’s review was “basically an internal inquiry and totally inappropriate for what is needed”.
“The Australian public need to have real confidence in a genuine independent inquiry. It needs to be arms length from PwC and its corporate relationships,” she said.
“You have to ask: ‘What has been Ziggy Switkowski’s previous relationships with this firm and with its principals?’”
Senator Pocock questioned PwC’s role in commissioning its own review.
“Promising to release a summary of the findings is not the same thing as making the findings available to the public,” she said.
The senator has said PwC should be referred to the National Anti-Corruption Commission “where it will be properly investigated”.
“Rebuilding the trust of the Australian public requires a genuine independent review, and what PwC is proposing is a long way from that,” Senator Pocock said.