Last week, documents uncovered by a joint parliamentary committee revealed how PwC International took control of its scandal-ridden local operation in May last year, having given PwC Australia just four days to accept its control or risk expulsion from the global consulting group.

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The documents released by the consulting inquiry on Friday revealed scathing letters to PwC Australia’s leaders from the global group, citing actions causing a “breakdown of trust and confidence in the firm, and damage to PwC’s reputation”.

The letter shows that PwC demanded approval for everything, including PwC Australia’s responses to the political inquiries and regulators.

“These documents demonstrate, in crystal-clear detail, the lengths to which PwC International went in its attempt to inhibit transparency and accountability in the wake of the tax leaks scandal, and the revelation of Mr Peter John Collins’ misuse of confidential Australian government information,” said committee chair Senator Deborah O’Neill.

“The documents show how PwC International threatened its Australian arm with expulsion from the global franchise if it dared to freely co-operate with the legitimate inquiries of this parliament. This is a blatant and deeply inappropriate form of intimidation.”

Senator Barbara Pocock said the documents reveal the low level of trust in the Australian operation by its own global leadership, but she was critical of both parties.

“PwC operatives, whether local or global, are sadly all too consistent in a pattern of withholding critical information about the scandal within their walls. They resist requests for information, push for confidentiality, and manipulate legal professional privilege where they can. Australians deserve better.”

A final report on the consulting inquiry is expected this week.

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