Uni scraps PwC contract over Scyne concerns

afr.com:

Edith Cowan University has moved to terminate a contract with PwC to manage its $853 million campus project in Perth amid concerns the work was scheduled to be moved to the big-four firm’s public sector consulting spin-off, Scyne.

The cancellation of the contract, which had more than two years to run, has left builder Multiplex in a difficult position because several PwC employees who were managing the build have stopped working on the project before the contract ends on Friday.

The proposed Edith Cowan University city campus off Yagan Square in Perth. 

PwC sold off its public sector consulting unit, which led to the creation of Scyne, after the firm’s tax leaks scandal prompted the Department of Finance to effectively cut it off from winning new work from the federal government.

The pitch is that Scyne purely concentrate on providing advisory services to public sector organisations, feature ASX-level governance and only allow partners and staff not involved in any PwC-related scandals to move across.

It was hoped that most of the work being carried out by PwC’s public sector advisers would move across to Scyne.

It is understood ECU officials did not want the contract to move firms. This was despite the firm’s project team winning an Advisory Excellence Award for their work on the ECU project in April.

The move contrasts with other public sector outfits, which are understood to be more receptive to a public-sector-focused firm like Scyne.

The remaining PwC part of the project was worth about $4.2 million.

While the PwC partner in charge of the project is moving across to Scyne, several members of the team did not want to move to the spin-off firm and are leaving as a result.

PwC is also investigating several former