PwC spin-off Scyne gets Canberra green light
PwC Australia spin-off Scyne has been approved by the powerful Finance Department to take on the federal government contracts of its predecessor and accept new Commonwealth work.
The Finance Department announced the clearance on Thursday morning, paving the way for federal government agencies to transfer their existing PwC contracts to the private equity-backed consultancy and to enter into new contracts with the company.
PwC sold its public sector consulting arm to private equity investor Allegro Funds in July for $1, after the big four firm was effectively cut off from winning new federal government work when the extent of its tax leaks scandal became public in May.
Finance reviewed the governance structures, ethics and culture of the newly created company, Scyne, with the help of Simon Longstaff, the executive direct of not for profit group The Ethics Centre.
“Finance concluded that Scyne has the appropriate governance, accountability and ethical frameworks in place to contract with the Commonwealth,” the department said in a procurement policy note published on Thursday morning.
“Finance notes that, after his review, Mr Greenwood reported that no individuals involved in the tax practitioners board matter or the breach of confidence and the subsequent handling of that matter are transferring to Scyne.”
Scyne has been structured as a company rather than a partnership, which is the form that the big four consultancy firm operate under. Former federal court judge Andrew Greenwood has investigated all partners and staff who moved to Scyne to ensure they were not linked to the tax leaks scandal or any other governance issues relating to PwC.
Scyne has committed to providing the Finance Department with an “ethics framework
Read more on afr.com
