Ziggy Switkowski leads review as PwC tax scandal goes global, ex-CEO resigns

Former NBN co-chairman Ziggy Switkowski has been appointed to lead an independent review of PwC’s troubled Australian operations, with the power to fire people involved in the scandal around the firm’s use of confidential tax policy information, as former chief executive Tom Seymour resigns from the firm.

The move follows the news that some of PwC’s top executives flew into the country to take control of a problem that is now affecting some of its biggest global clients.

Ziggy Switkowski has been appointed to lead an independent review of PwC’s troubled Australian operations.Credit: Renee Nowytarger

PwC Global’s general counsel, Diana Weiss; the head of its tax and legal operation, Carol Stubbings; and chief risk officer Coenraad Richardson are in Australia to oversee an independent review to rebuild the firm’s reputation.

On Monday afternoon, PwC announced Switkowski would lead an independent review of the firm’s governance, accountability and culture following the issues identified by the Tax Practitioners Board’s investigation into the firm’s use of confidential information.

“We will not hesitate to take the recommended actions, including, where appropriate, exiting further people and partners from the firm,” PwC said of the report, which is due in September.

At a Senate estimates hearing in March, the Tax Practitioners Board said up to 30 PwC staff were involved in emails sharing the confidential information. PwC has confirmed that some are still in senior positions at the firm.

Acting chief executive of PwC Australia Kristin Stubbins said: “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.”

(Clockwise from top left) PwC Global’s chief risk officer Coenraad Richardson, tax and legal operation head Carol Stubbings and general counsel Diana Weiss are in Australia to oversee a review to rebuild the firm’s reputation.

Greens Senator Barbara Pocock was not impressed with the PwC review.

“Regardless of who they put in charge, it’s still paid for and run by PwC. Promising to release a summary of the findings is not the same thing as making the findings available to the public,” she said.

“We can’t have any confidence in it. This is a matter for the National Anti-Corruption Commission where it will be properly investigated.”

PwC also announced that Tony O’Malley, head of its global legal business solutions team, had been appointed as chief risk and ethics leader of its Australian business with immediate effect.

The stakes are high. The Australian Financial Review reported that three of the largest global corporations – Apple, Google and Microsoft – are among those targeted with confidential information about the government’s plans to focus on tax avoidance.

PwC declined to comment about the trio.

Senator Deborah O’Neill – who chairs the Corporations and Financial Services Committee that released a damning 148-page document this month revealing the scale of the firm’s profiteering from leaking confidential government tax plans to potential clients – said the cultural problems the scandal highlighted raised questions about the firm’s business.

“You cannot provide a level of assurance as required by our financial markets, let alone by the government, if you are operating out of a model that is so clearly devoid of an ethical backbone,” O’Neill said.

Following recent resignations from other leadership roles, Stubbins has appointed Rob Silverwood as head of its Financial Advisory business.

Nicole Salimbeni will lead a response plan for establishing appropriate governance and structures.

On Monday, PwC announced that Seymour would “retire from the partnership on 30 September, 2023, to enable an orderly transition”.

Seymour has also stood down from the board of a well-connected military contractor that is chaired by former defence minister Christopher Pyne.

Former PwC Australia CEO Tom Seymour resigned over the tax leaks involving the firm.Credit: Michael Quelch

Seymour had his profile removed as a director of Australian Missile Corporation last week.

The privately owned company was set up as a potential strategic partner of the Defence Department in establishing an Australian-based Guided Weapons and Explosive Ordnance Enterprise. It is fully owned by defence contractor Nioa, which is owned by its chief executive, Robert Nioa.

On Monday, Nioa said Seymour resigned last month after a board restructure.

“Mr Seymour was appointed to the advisory board of the Australian Missile Corporation – a Nioa Group company in June 2022 – before the AMC board and Nioa board became one under a company restructure earlier this year,” Nioa said.

The AMC website shows that no other board members have resigned, including former Australian soldier and Victoria Cross recipient Mark Donaldson.

Seymour led PwC’s tax operation when confidential information was widely shared within the firm and marketed to multinational clients.

He confirmed he had received the emails but denied he was aware the information was from a breach of confidentiality agreement by PwC partner Peter Collins.

Collins received a two-year professional ban from the Tax Practitioners Board earlier this year in response to his breach of the confidentiality agreement.

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