Scyne gets the all-clear to take over PwC's government work

Public service agencies have the go-ahead to engage Scyne Advisory, the new consultancy firm born from the ashes of the PwC breach of trust scandal.

The Department of Finance has issued a statement to the Australian Public Service stating that the new firm met appropriate governance, accountability and ethical frameworks to be awarded government contracts.

In other words, it is business as usual under a new name.

“PwC approached the Commonwealth seeking to novate existing Commonwealth contracts from PwC to Scyne,” the Finance Department said in a procurement note to agencies.

“This included novation of contracts related to the Whole of Australian Government Management Advisory Services Panel that Finance is responsible for.

“To ensure a coordinated and efficient approach across the Commonwealth, Finance has taken responsibility for managing the Commonwealth’s response to the establishment of Scyne …

“Upon receipt of a request from PwC/Scyne to novate, entities will need to assess the capability and capacity of Scyne to deliver the specific contractual requirements, with consideration of any specific novation processes detailed in each contractual arrangement.”

The go-ahead means the sale of PwC’s government business arm to Allegro Funds for $1 to create Scyne Advisory can now be finalised.

It also allows current government contracts with PricewaterhouseCoopers to be transferred to Scyne.

But while concerns over how to move existing PwC contracts to Scyne were raised, the Department saw no problem with agencies dealing with the new firm comprising former PwC staff.

“Finance concluded that Scyne has the appropriate governance, accountability and ethical frameworks in place to contract with the Commonwealth,” it said.

A probity review conducted by former Federal Court judge Andrew Greenwood found that no PwC staff involved in the specific breach of trust matter would be employed by Scyne.

Mr Greenwood was appointed the first non-executive director of Scyne’s Advisory’s board and chairs its probity and conflicts committee.

PwC sold off its government work – state and federal – after it was caught red-handed leaking highly confidential Treasury information from a project on which it was advising the Federal Government.

PwC used the information to help its multinational clients find loopholes in a new tax regime PwC was actually helping the government establish.

The issue is now the subject of a federal police investigation and parliamentary inquiries.

Former Telstra boss Ziggy Switkowski also undertook an independent internal review of the company.

His recently published report is scathing of PwC’s management and culture.

The ongoing Senate inquiry into the ethics of consultants to the Commonwealth is currently grilling some of PwC’s current and former management over the scandal.

Former chief executive officer Luke Sayer, who was the boss at the time of the breach of trust, told the inquiry he was unaware of the confidentiality breaches when they occurred because the Australian Taxation Office had not directly advised him of them.

He said he was not made aware of the breaches until he left the firm.

But senators did not accept that.

Greens senator Barbara Pocock was highly critical of the former CEO’s evidence.

“You say you weren’t aware. You’re very careful in your language. You are very careful,” Senator Pocock said.

“Classic PwC playbook. Not aware of the confidentiality issues that have since emerged.

“You were certainly not managing. You weren’t leading. Either that or you’re wilfully blind, or you are misleading us. There are no other words for it.”

Current CEO Kevin Burrowes told the committee he accepted Dr Switkowski’s findings and said he would apologise repeatedly to the Australian people for the PwC’s conduct.

“The firm clearly has found itself in the terrible position through a failure of leadership, and therefore, the only assertion you can make is that they failed in their leadership of PwC Australia during that time,” he said.