PwC Australia, a troubled consultancy firm, has appointed Kevin Burrowes as its new CEO, replacing the former acting CEO Kristin Stubbins after only seven weeks. Burrowes, currently based in Singapore, will take on the role once his visa is approved and will also become a partner in PwC Australia. Additionally, PwC announced its plans to sell its federal and state government consultancy business to private equity firm Allegro Funds for a nominal fee of $1.
Burrowes expressed his honor in accepting the position and pledged to work alongside the leadership team to rebuild transparency, repair trust with stakeholders, enhance governance and culture. PwC Australia has faced significant pressure due to allegations of abusing its advisory role by leaking confidential information about potential tax changes to clients for personal financial gain. Former partner Peter Collins has been referred to federal police, and nine other partners have stepped down in response to these allegations. Former CEO Tom Seymour apologized and resigned in May, acknowledging the need to restore trust with the government and the public.
The divestment of PwC’s government consultancy business to Allegro will ensure job security for 1,700 employees. This move will result in the establishment of a separate firm entirely focused on government business. It also marks PwC Australia’s complete exit from government advisory work at both the state and federal levels. The government consultancy business was responsible for about 20 percent of the firm’s revenue in the fiscal year 2023. PwC hopes that this decision will allow the company to move past the tax leak scandal and ensure stability for its other clients.
An independent review, led by former Telstra boss Ziggy Switkowski, is set to be released in September, assessing PwC’s conduct in the tax leak scandal. Burrowes will collaborate with others to implement the recommendations from the review. The Senate committee has described PwC’s actions in the scandal as a calculated and serious breach of trust, recommending that PwC disclose the names of involved partners and cooperate with investigations by federal police and the Tax Practitioners Board. In addition, a New South Wales government inquiry has temporarily suspended taxation-related contracts with PwC as it examines the firm’s use of consultancy services.