John Mullen to chair PwC government consulting spin-off Scyne Advisory

Scyne Advisory has appointed corporate veteran John Mullen to chair the government consulting business.

Scyne Advisory has appointed corporate veteran John Mullen to chair the government consulting business. Picture: AAP

Corporate veteran John Mullen has pledged to introduce ASX-style corporate governance at PwC Australia’s spin-off government consulting business Scyne Advisory after taking on the job as chairman.

Scyne Advisory announced on Monday that Mr Mullen, who heads up the boards of Treasury and Brambles, would be appointed to chair the firm as backers Allegro Funds move away from daily management of the consulting operation.

Mr Mullen’s appointment comes after the Foreign Investment Review Board cleared Allegro’s purchase last week and after the successful migration of Scyne Advisory’s systems away from PwC over recent days.

Allegro purchased Scyne Advisory from PwC in a $1 deal brokered in July. This saw Allegro commit $100m to funding the consulting operation, comprised of former PwC staff who provided consulting services to state and federal governments.

Mr Mullen said he found the Scyne Advisory prospect exciting, noting he was hoping to personally invest in the business.

“It’s pretty rare you get the opportunity to participate in the birth of a new industry vertical like this,” he said. “It’s one of the most compelling opportunities around at the moment.”

Mr Mullen said he had first crossed paths with Allegro after the private equity player purchased Toll’s Australian operations in 2021.

He said the proposal to use ASX-style corporate governance at Scyne, rather than the traditional partnership model which dominates the audit and consulting sector, was attractive.

The governance would come from processes and procedures, but the private equity ownership model would also allow the board to focus on matters of concern rather than quibbling over directors’ remuneration.

“In the private equity model you can make fairly quick decisions and get on with it,” he said.

Allegro founding partner Adrian Loader will step back from chairing Scyne Advisory’s board but will continue to steer the firm’s operating committee.

Mr Loader said although the board had not yet met, it would be charged with setting the tone at the top for the firm of almost 1300 staff who made the jump from PwC. “There’s a whole monitoring and compliance process we’re bringing in,” he said.

Scyne Advisory will compete with PwC in some business areas for charities and not-for-profits, but will otherwise focus on government work.

Law firm Herbert Smith Freehills, which supported Allegro Funds and Scyne Advisory’s teams on the deal with PwC, also assisted in the negotiations with state and federal governments.

PwC offloaded its government consulting operation after new work evaporated in the wake of revelations the firm’s tax practice had misused confidential government briefings to create strategies for clients.