Dr. No denies Senate Inquiry access to PwC Report
The global consulting firm is asserting legal professional privilege and has refused to allow its Australian branch to access the report on insider trading.
Global consultancy PriceWaterhouseCoopers (PwC) is defying a request from the Australian parliament to provide a copy of its investigation into a tax leak scandal that occurred in 2015. This defiance has led one senator to refer to the company’s global chairman, Bob Moritz, as “Dr. No.”
During that time, PwC adviser Peter Collins was assisting the Australian government in creating stricter multinational tax laws. However, he was also sharing confidential information with colleagues, who later used it to assist clients in Australia and the United States in avoiding taxes and making significant profits.
Despite signing confidentiality agreements with the Australian government, Mr. Collins shared sensitive information without authorization.
Concerns were raised internally about potential insider trading, with one partner sending a cautionary email to prevent the information from being circulated outside the firm, stating that it could have serious implications for PwC Australia.
However, PwC partners proceeded to form a “global team” to strategize how to leverage the information for financial gain, particularly in the United States.
Leaker Was Praised in Emails
After the new laws were implemented in January 2016, PwC partners lauded Mr. Collins’ work and the advantage his leaks provided to the firm.
The project resulted in approximately $2.5 million in revenue from U.S. clients and involved staff from PwC offices in various countries.
The Australian senator, Deborah O’Neill, who mandated the release of PwC emails during a parliamentary inquiry, condemned the company’s actions, labeling them as unethical and indicative of a global culture of malpractice.
Despite completing the investigation, PwC International has refused to share the report with the Australian parliament, citing legal professional privilege. Instead, it has presented its own overview assuring stakeholders of the integrity and independence of the Linklaters investigation.
However, this stance has not appeased Australian politicians or government agencies seeking access to the report. PwC has also denied its Australian arm the opportunity to review the report, despite repeated requests.
Contradictory Explanations
In a statement issued last year, PwC International acknowledged that employees who received confidential Australian government information should have questioned its confidentiality status but maintained that they did not perceive any wrongdoing at the time.
Despite pressure from authorities, PwC has not shared the Linklaters report with the Australian Tax Office or parliamentary inquiries.
The inquiry now plans to summon PwC International executives to elucidate why they are withholding the report from the parliament. However, the Senate lacks jurisdiction over individuals residing outside Australia.
