PwC’s new hit: Consulting firm PricewaterhouseCoopers dumped from preferred SA Government contract panel

One of the country’s biggest consultancy firms has been dumped from an official South Australian contract panel in the midst of a national tax scandal.

One of the country’s biggest consultancy firms has been dumped from an official South Australian contract panel after a national tax scandal.

This has occurred despite assurances that the SA practice was not enmeshed in the federal tax scandal.

Embattled “big four” firm PricewaterhouseCoopers, embroiled in a confidential information outrage, billed taxpayers almost $4.8m for 11 state government contracts last financial year.

The firm, which is subject of a multi-country Australian Federal Police investigation over the leaks imbroglio, gave paid help to departments including Premier and Cabinet, Education, Energy and Mining, Attorney-General as well as Trade and Investment.

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PwC SA managing partner Julian McCarthy declined to comment, but he was not part of any of the tax scandal. Picture: PwC

It also audited Treasury’s internal books, while providing other “checks and balance” advice, along with other external work for SA Health, Renewal SA, Housing Trust, Country Fire Service and office for the Office of the Commissioner for Public Sector Employment.

But amid more scrutiny on consultant firms, PwC has been removed from the state government’s preferred audit and financial services supplier panel, meaning it can’t be considered for SA taxpayer work.

PwC was forced to sell its government consultancy business – valued at up to $1bn and which employed more than 1750 people – for $1 to private equity operator Allegro Funds last year after a former senior tax consultant leaked to clients and partners confidential information obtained as part of his government contract.

Up to 30 partners and staff were found to have been involved.

In November last year Scyne Advisory was born from the Allegro firesale, which included 100 staff in SA moving from PwC including Adelaide chief, former Liberal federal Minister Jamie Briggs.

The firm, which employs more than 1000 former PwC staff nationwide, has since successfully tendered for various government contracts including with the Transport Department, SA Health and ReturnToWorkSA.

At the height of the scandal in May last year Treasurer Stephen Mullighan sought assurances about access to SA government data had been demanded of the PwC, which was satisfied.

Mr Mullighan then said PwC had assured the government that its SA practice was not enmeshed in the federal tax scandal.

Port Adelaide Power chairman David Koch with former PwC SA managing partner Jamie Briggs at Adelaide Oval in 2019. Picture: Mike Burton

The government also demanded other professional services firms have “robust processes” to prevent confidential information being leaked.

In a statement issued response to inquiries, a spokeswoman for Mr Mullighan revealed that “PwC has been removed from the across government Audit and Financial Services supplier panel” in November last year.

“Following the split in services Scyne Advisory has been included in the supplier panel,” she said.

“However, Scyne Advisory cannot provide taxation advice, financial statement audits, or any services requiring an Australian Financial Services License.”

Mr Briggs, Scyne’s national spokesman, said given the legacy of the business, former Federal Court judge Andrew Greenwood, “undertook a rigorous investigation of every staff member joining (us) to ensure that there was no connection to the PwC tax issue or any other ethical breach”.

PwC Adelaide managing partner Julian McCarthy referred inquiries to a firm spokeswoman, who declined to comment.

She pointed to a statement in June last year when the company announced the sale of its federal and state government business arm.

The company said last year the sale “will result in an exit from all government advisory work, at both the state and federal levels”.