The new steps include agreeing to release the Switkowski’s full final report when it was completed (PwC had originally only wanted to release a Cliffs Notes version), standing down nine partners (but not naming them), appointing two independent directors to its governance board (probably about time) and seeking to ringfence its federal government business “to minimise conflicts of interest and enhance governance” (a Hail Mary to protect an incredibly lucrative income stream).
Stubbins also apologised in an open letter to the community, the Australian government, its clients, and the firm’s staff. Everyone got an apology – but it came with a few caveats.
Again, the firm was insistent in its Monday press release – under a heading “Correcting misunderstandings” – that it would not reveal the redacted names of the PwC staff members who received emails relating to the leak in the Senate dossier.
“We believe that the vast majority of the recipients of these emails are neither responsible for, nor were knowingly involved in any confidentiality breach,” Stubbins said in her prepared statement. She also insisted that “our clients were not involved in any wrongdoing and no confidential information was used to enable clients to pay less tax”.
One can only hope that these two claims remain to be true as investigations – by the Senate, the firm, government departments, the federal police and the media – continue.
Any variance in this position will lead to even more reputational damage.
Some of PwC’s claims will be tested this week. Not only are the ATO and Treasury up on Tuesday, but on Wednesday the Senate will hear from the Tax Practitioner’s Board, the body that found Collins had breached his duties when dealing with the government information.
Of particular concern to the committee are the firm’s governance processes, and if there was any evidence that PwC’s clients had the inside running of the government’s tax plans that were imparted to Collins and allegedly on to the firm’s clients. The number of contracts between Treasury and the ATO and PwC will also be a key focus. The Senate also wants a list of names of people on the emails.
Given the Senate’s mood, Tuesday’s estimates are unlikely to throw up any good news for PwC. Greens senator Barbara Pocock said on Monday following PwC’s PR blitz: “PwC is scrambling to remediate the impact of its appalling behaviour, but it’s too little too late, as far as I’m concerned.”
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Labor’s Deborah O’Neill, the committee chair, was also having none of it. “Are we supposed to be grateful that, after weeks of denial and resistance, Ms Stubbins has finally ‘directed nine partners to go on leave, effective immediately, pending the outcome of our investigation’?” O’Neill said, reading a quote from the PwC press release.
“Who are these people? Again, no names,” said O’Neill, again calling for the full list of the 55 staff who received the emails.
It’s not clear whether there will be a smoking gun at the estimates hearing, but PwC will hope its version of events lines up with those of the government bodies and departments it works so closely with.