PwC dumps political donations as new CEO prepares to land in Australia
PwC Australia has dumped its political donations program as it prepares for the arrival of its new CEO following weeks of attacks over the firm’s use of confidential information.
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PwC Australia will scrap almost all its political donations after facing months of attacks over the firm’s use of confidential tax briefings, which have forced out much of the firm’s senior leadership.
Acting chief executive Kristin Stubbins wrote to partners on Monday, saying the firm was dumping its political donations program “with none to be made in FY24” amid concerns over conflicts of interest.
She said the ban extended to PwC’s payments to attend fundraising events as well as in-kind donations from allowing groups to use its facilities to host events.
“While we cannot change the past, we can control our actions today and in the future,” Ms Stubbins said. “As stated, we will continue to take all appropriate steps to improve the firm’s governance standards.”
New data also reveals PwC has been handed several new contracts by the federal government despite new rules introduced in May to punish the firm over its use of confidential information.
Ms Stubbins said although the firm had “taken the utmost care to ensure our political donations do not create any real or perceived conflicts of interest” PwC was moving to put permanent blocks on donations in a bid to ensure “the highest standards of governance”.
However, PwC is understood to be retaining its memberships of business groups that indirectly go to funding political engagements.
PwC has been the long-time sponsor of fundraisers for the government and the opposition on federal and state levels.
The firm also hosted the Federal Labor Business Forum on May 9 – which charged guests $5000 a head for a spot at the budget dinner – and it sponsored a $4000-a-head dinner last November, just days before the Tax Practitioners Board moved to impose sanctions against the firm for its role in using confidential information to benefit its business with 14 tech firms.
Australian Electoral Commission data shows PwC donated at least $246,532 in the 2021-22 financial year, and $246,008 the previous year. It has donated at least $2.2m in the past 10 years on a federal level.
Ms Stubbins said PwC was trying to restore its reputation. “We should be confident that we will restore our brand, our business performance and re-earn the trust of our stakeholders and broader community,” she said.
“To do this we must come together as a partnership and support one another, so that we are truly able to lean in and lift our team members and care for our clients.”
PwC’s moves align it with several other professional services giants.
Listed consulting giant Accenture said it did not make political donations within Australia, either directly or in-kind. An EY Oceania spokeswoman said the firm did not make “any direct monetary political contributions” but did buy tickets, pay for forum memberships and provide sponsorship or host events.
“These donations are typically evenly spread between the two major parties,” she said.
Greens senator Barbara Pocock said the donation bans were an “important step forward in cleaning up the murky world of consulting”. “Anyone doing business with the government should not be allowed to make political donations,” she said. “If Australia’s biggest consulting companies recognise the perceived corruption then so should Labor and the LNP.
“It’s time to break all the links. The government must act now to clean up politics once and for all.”
Labor senator Deb O’Neill said PwC’s move to cease donations “does not have any bearing on the kind of misconduct which has been the subject of public discourse in recent months”.
Ms Stubbins revealed the firm’s incoming chief executive, Kevin Burrowes, was set to land in Sydney from Singapore next Monday.
Mr Burrowes will replace Ms Stubbins, who stepped into the role when PwC’s former chief executive Tom Seymour resigned from his position after revealing he had been in receipt of emails sharing confidential information.
Originally published as PwC dumps political donations as new CEO prepares to land in Australia
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