PwC is back in the game, offering consulting services to the Australian Government and winning contracts. Photo: Region.
“Finance has concluded that PwC Australia has implemented and/or revised its policies and processes to meet the ethical standards of governance, culture, and accountability to support PwC Australia’s re-engagement with the Australian Government.”
As has been reported, that’s the outcome of the Finance Department’s Examination of the ethical soundness of PricewaterhouseCoopers Australia.
The report of its inquiry into the biggest ever breach of trust by a private firm against Australian taxpayers has concluded that all should be forgiven.
“Finance concludes that PwC Australia has implemented, or is in the process of implementing, appropriate governance, ethical and cultural structures to significantly improve its ethical operation,” it states.
“Finance considers that, in light of these changes and for the reasons set out above, it is appropriate for Australian Government entities to consider contracting with PwC Australia as they would any other supplier.”
The reasons “set out above” are the report’s detailing of just how much PwC has learned from its treachery, tweaked a few governance practices, and remained all-round good ‘ol boys the government should be proud to work with.
Finance’s recommendations – seemingly wholeheartedly embraced by the Federal Government – serve only to continue the assault on Australian taxpayers.
Let’s revisit exactly what PwC did – just in case anyone needs reminding of the depth of illegal and disgraceful antics the consultancy giant rolled out.
In 2012, a project started by the OECD and the G20 looked at ways to reduce tax avoidance by multinational corporations, and the Australian Treasury was tasked with carrying out its findings in Australia.
The following year, Treasury engaged PwC partner Peter Collins to give advice on designing new tax laws in Australia aimed at closing any loopholes that could be exploited to prevent multinationals from paying their fair share of taxes in this country.
That work resulted in the Multinational Anti-Avoidance Law, which was passed in 2015, coming into effect in 2016.
Peter Collins signed three separate confidentiality agreements with Treasury to protect the sensitivity and secrecy of the work being developed.
Yet he violated those agreements in the most deliberate and egregious manner he could.
Collins shared that confidential information with at least 53 PwC partners, including the firm’s tax advisory arm so they could come up with strategies to help their international clients outsmart the new laws once they were introduced.
That’s right, PwC was helping its clients to avoid paying the very taxes PwC was assisting the Australian Government to create.
It advised at least 14 multinationals on how to avoid the law and even shared the confidential information directly with at least one of them.
The move earned PwC an immediate sweet $2.5 million and then some.
Not a bad racket: get paid handsomely by the government for helping it find ways to stop multinationals ripping off Australia; then get paid much more by those very multinationals for helping them to continue rorting the system.
Of course, when this all came to light, there was all manner of outrage expressed.
Collins, who had left the firm by then, was investigated on a number of levels and lost his tax adviser’s licence for starters.
Heads rolled across PwC as the extent of the treachery unravelled. Police were engaged and parliamentary inquiries unearthed the most shocking examples of born-to-rule entitlement by the consultancy.
Liberal Senator Richard Colbeck, Labor Senator Deborah O’Neill and Greens Senator Barbara Pocock were dogged and thorough in their inquiries. They were determined not to let PwC get away with it.
But, it seems, in the end, the big multinational looking after its multinational mates while giving Australia the finger has gotten away with it after all.
The company has convinced the Australian Government that its own internal inquiries, its management changes, its governance restructure, its selling off part of the business (for $1) and its appearances before Senate inquiries all add up to penitence and humility.
To be ignored are the firm’s obfuscation in those hearings, its refusal to hand over materials demanded of it by the Senate, its contempt of the Australian Parliament, and its deception from the outset about the extent of its fraudulent behaviour.
Not to mention the sheer audacity and disgrace of what PwC felt it had the right to do in breaking the law and betraying Australia.
All of that is to now be overlooked and forgiven.
Despite the senators’ importuning for a different outcome, PwC is back in the good books and the ban on its bidding for government work is now lifted.
There is simply too much money at play for it to have ever resulted in a different outcome.
A proud moment for the Finance Department and the Australian Government.
Original Article published by Chris Johnson on Region Canberra.
