PwC spin-off Scyne Advisory wins right to contract for government jobs

The Department of Finance has cleared the way for Scyne Advisory to start contracting for government jobs after the consulting business split off from PwC Australia.

The spin-off of PwC Australia’s government consulting business, Scyne Advisory, will be able to contract for government jobs after the Department of Finance gave the all clear.

In a note published on Thursday, Finance told public servants they could consider Scyne for new work in the same way they would review its competitors.

This comes after the formal separation of Scyne from PwC after the audit and consulting giant sold its government advisory business in the wake of the damaging tax scandal revelations that showed the firm had misused confidential government tax information to benefit its clients.

PwC sold the government consulting business to private equity players Allegro Funds and a coterie of partners from the firm in a $1 buyout.

Industry watchers said the deal, struck as new business for PwC’s government consulting business dried up, was priced at a massive discount to its potential $750m value.

Scyne’s Ben Neal with Allegro’s Fay Bou and Adrian Loader, plus Scyne’s Tim Jackson and Diane Rutter. Picture: Renee Nowytarger

Finance said it was allowing Scyne to begin pitching for new work after an examination process had found the firm to have “appropriate governance, accountability and ethical frameworks in place to contract with the Commonwealth”.

Retired Federal Court judge Andrew Greenwood was interviewed by Finance as part of its probe of Scyne’s probity and governance.

Scyne interim managing partner Richard Gwilym said the clearance from Finance was “enormously important”.

“It confirms we’ve met the required standard to serve the public sector, as well as validating our new model of specialist, focused advice to governments,” he said.

“Our Canberra team is eager to get back to work with clients, but we will be a different organisation.”

“The confronting lessons of the past six months are hardwired into our new structure, and will shape the organisation as we set up as an independent company, focused firmly on the public sector.”

Finance said Scyne could now be considered for new contracts, as well as the potential novation of existing PwC contracts held by the firm’s government consulting business.

Scyne is also under consideration over novation requirements to take on PwC’s spot on the Management Advisory Services Head Agreements, opening the door to more government jobs.

However, Finance said it would be subjecting Scyne to an intense surveillance over the coming 12 months.

Finance said this would see it engage in monthly meetings with Scyne “to ensure that Scyne’s actions and behaviour meet the high ethical standards expected by the Commonwealth”.

Scyne will also be required to provide its ethics framework within three months and report twice a year on its implementation of ethics and accountability frameworks to Finance.

Originally published as PwC spin-off Scyne Advisory wins right to contract for government jobs