PwC Australia fired eight partners, including its former CEO, as part of an internal inquiry into the leak of classified government tax plans by a former partner, the firm said on Monday.
In a statement, PwC said the inquiry uncovered many instances of “misuse of confidential information” that violated professional standards and “a failure of leadership and governance” to resolve them.
“Accountability is critical to improving our culture and based on our investigation to date, a number of partners fell short of what was expected of them.” Acting CEO Kristin Stubbins said, “They are now being held accountable for their misconduct.”
After a former partner who advised the Australian government on new tax rules targeting corporate tax dodging shared secret drafts with colleagues, PwC fired them to mitigate the damage.
Former chief executive Tom Seymour, who resigned in May after admitting to receiving secret communications concerning the government’s tax plans, is one of the eight partners who have left or are leaving.
Seymour and PwC’s other seven partners did not immediately respond to calls for comment.
Three partners were cited for “failing their professional responsibilities.”
The other five, including the firm’s financial services business chairman, were fired for failing to prevent the conduct or “hold others accountable for their behaviours.”
“This allowed bad behavior to persist without accountability.” PwC, one of the “big four” accounting companies, stated, “These behaviors are not, and never have been, acceptable under PwC’s standards.”
Last week, Stubbins threatened serious repercussions for individuals engaged in a scandal that cost the big firm contracts and prompted it to split off its profitable public sector consulting unit for A$1. In other places, the investigation is ongoing, the firm stated.
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