The scandal engulfing global consulting giant PwC has deepened, with an Australian senator accusing its proposed internal inquiry of “continuing a cover-up” amid calls by a Greens senator for an investigation by the Australian federal police.
PwC is the subject of multiple investigations after a former senior executive breached confidentiality agreements while working with Treasury and shared information about future tax policies with colleagues. That information was later used to help clients and make millions of dollars.
The Labor senator Deborah O’Neill, who was instrumental in obtaining documents that detail the scandal, said the Australian people deserve to know every senior executive who received confidential government information about tax policies.
The 144 pages of internal PwC emails are heavily redacted with names and full email addresses removed. It is not clear how many people who received the confidential information, or acted on it, are still employed by the company.
Earlier this week, PwC announced the businessman Ziggy Switkowski would conduct an investigation into the company’s operations and culture. His report is due by September and could lead to further resignations or sackings.
“When complete, PwC Australia will share a summary of these key recommendations to ensure transparency,” a company spokesperson said.
But O’Neill said this limited disclosure indicated the proposed internal review would not meet the standards of transparency expected by the Australian government and taxpayers, and accused the review of “continu[ing] the cover-up”.
“PwC have indicated that when that review that they are paying for themselves is completed, they might decide to provide a summary of some parts that they want to be revealed to the public,” O’Neill said.
PwC was contacted for comment.
Meanwhile, the Greens have obtained independent legal advice suggesting PwC’s actions should be investigated by the Australian federal police.
The Greens senator Barbara Pocock has highlighted advice from the Sydney lawyer Brent Fisse, who has considered potential liability issues associated with the misuse of confidential information.
“A full AFP investigation should be undertaken into the potential application of the criminal code and the Proceeds of Crime Act,” Fisse said in advice seen by Guardian Australia.
“The PwC Australia partnership would not be exposed to potential criminal liability for general dishonesty or conspiracy to defraud because, as a partnership, PwC Australia is not subject to corporate criminal liability.
“However, the commonwealth has the power to impose remedies informally or contractually on PwC Australia.”
Pocock said “the AFP should be investigating criminal charges right now”. The senator has also suggested the scandal be investigated by the new national anti-corruption commission, which will launch in July.
Pocock and O’Neill will use upcoming Senate hearings to get more information about how many people knew confidential information was being misused.
“I have a genuine fear about a contagion of these individuals staying at PwC and continuing the practice,” O’Neill said.
“This matter isn’t going to go away. There is no way that the commonwealth government or major corporations inside and outside of Australia can continue to do business as usual with PwC after this.”
The Liberal senator Andrew Bragg said the misuse of confidential government information by PwC was an “abomination”, “unethical and outrageous”.
Bragg, who was also critical of PwC’s own proposed inquiry, questioned whether the scandal would have occurred if regulators and enforcement agencies were strong enough to scare executives into doing the right thing.
“I have asked to expand the federal inquiry into the Australian Securities & Investments Commission (Asic) and I expect the government will support my effort to do this because we need to look at how they have enforced the accounting laws and standards and ethical frameworks,” Bragg said.
“We need to understand why Asic has not been successful in securing prosecutions more broadly, but we also need to understand how this stuff can just happen. Clearly, PwC thought this was something they could get away with.”
When PwC’s own investigation was launched, the company’s acting chief executive, Kristin Stubbins, said Switkowski would “have access to all the people and information he needs to conduct a rigorous and robust review”.
“We are committed to learning from our mistakes and ensuring that we embrace the high standards of governance, culture and accountability that our people, clients and external stakeholders rightly expect,” Stubbins said.
