All articles tagged with #allegro funds
PwC is selling its government advisory business in Australia to Allegro Funds for just AUD 1 ($0.7) after a former tax partner was found to have been passing around confidential government information. The scandal led to the Australian Treasury referring the matter to police for criminal investigation and PwC's CEO stepping down. The sale accounts for about 20% of PwC's revenue in the country.
PwC Australia will sell its government business for A$1 after a scandal over the misuse of confidential government tax plans. The move will allow the firm "to move forward with predictability and focus," PwC Australia said in a statement. The company has said that no confidential information had been used to help clients pay less tax. PwC Australia appointed Kevin Burrowes as its new chief executive on Sunday. The company also said it would sell its Australian federal and state government business to private equity firm Allegro Funds.
PwC Australia has entered an exclusivity agreement with Allegro Funds to sell its government practice for A$1 ($0.67) as it brings in a new CEO from Singapore to lead the local firm through the fallout from a national scandal. The scandal revolves around a former PwC tax partner who had been advising the federal government on laws to prevent corporate tax avoidance and shared confidential information with colleagues who then used it to pitch to multinational companies for work. The deal attempts to insulate the firm's government consulting business and rebuild trust with the many departments and agencies that have frozen the firm out of new work.
PwC Australia is reportedly in talks with private equity firm Allegro Funds to sell off its government, education, and healthcare practice, which could include 100 partners and 1,000 staff. The move would provide independence from PwC and allow the partners to bid for government contracts again. PwC has been dealing with a PR storm and the loss of critical clients due to a tax scandal involving the leak of confidential government tax information by ex-partner Peter Collins. A recent survey found that 79% of Australians want PwC banned from receiving new government work.