PwC Australia appears to be in line for new government contracts despite its ongoing scandal. 

The federal government is reportedly poised to award new taxpayer-funded contracts to PwC Australia. 

This development comes amid multiple probes by the Australian Federal Police, the Tax Practitioners Board, and the Senate into potential criminal behaviour by PwC members.

The Department of Finance recently issued a notice reminding government agencies not to grant new work to PwC Australia until December 1, 2024. 

This moratorium was a result of the firm’s involvement in the scandal where confidential government tax plans were allegedly misused for corporate gain. PwC Australia has agreed to this temporary ban on bidding for new Commonwealth work until the specified date.

However, on the same day as the notice, PwC Indigenous Consulting, a firm owned 49 per cent by PwC Australia, secured over $700,000 in new government contracts. 

This move signals a potential easing of restrictions on PwC’s operations within government circles.

The scandal, which surfaced in early 2023, involves senior PwC Australia partner Peter-John Collins, who is accused of using confidential information to help multinational clients avoid taxes. 

Internal emails from 2015 revealed Collins’ awareness of the sensitive nature of the information and the strategic advantage it provided. 

One email stated; “No need to share this because all supposed to be secret… The imported mismatch formulas will blow our mind but be easy to sidestep.”

PwC allegedly exploited this information, resulting in significant financial gains by advising large corporations on how to circumvent the new tax measures. This has led to multiple inquiries and a temporary freeze on PwC’s ability to bid for government contracts.

The ongoing investigations have raised concerns about PwC’s readiness to resume government work. 

PwC Australia has responded by restructuring its operations. 

The firm claims to have divested its government advisory business, forming a new entity, Scyne Advisory, which now handles government contracts. 

A spokesperson for PwC Australia told reporters; “PwC Australia has divested its federal and state government advisory business and no longer operates in those markets”. 

Previous practices continue to be probed, such as the firm’s eagerness to “land and expand”, where initial contract scopes are significantly broadened over time.

The Department of Finance has reiterated that PwC Indigenous Consulting and Scyne Advisory are not covered by the current ban. 

“Finance has separately concluded a review into PwC Indigenous and found that it was appropriate for the Commonwealth to continue engaging with PwC Indigenous,” it said. 

This exemption has sparked debate over the true separation between PwC Australia and its associated entities. 

Critics argue that the structural changes are insufficient to address the fundamental issues raised by the scandal.