PwC Australia fires eight partners amid leaks scandal

Firm said its investigation found multiple examples where the 'misuse of confidential information' breached professional standards

Sackings mark the latest move by PwC to contain the fallout from a scandal first revealed in January, where a former partner who had been advising the Australian government on new tax laws targeting corporate tax avoidance shared confidential drafts with colleagues which were used to pitch for work.

PwC Australia has fired eight partners as part of an internal investigation into the leak of confidential Australian government tax plans by another former partner, the firm has said. 

The eight partners, who have left or are in the process of leaving, include former chief executive Tom Seymour, who resigned in May after admitting he had received emails containing confidential information about the government's tax plans. Mr Seymour will exit PwC Australia ahead of a previously announced retirement date, the firm said.

PwC Australia said its investigation found multiple examples where the "misuse of confidential information" breached professional standards and also identified "a failure of leadership and governance" to address the breaches.

"Accountability is critical to improving our culture and based on our investigation to date, it is clear that the conduct of a number of partners fell short of what was expected of them. They are now being held accountable for their misconduct," acting CEO Kristin Stubbins said in the statement.

Scandal

The sackings mark the latest move by PwC to contain the fallout from a scandal first revealed in January, where a former partner who had been advising the Australian government on new tax laws targeting corporate tax avoidance shared confidential drafts with colleagues which were used to pitch for work. 

Of the eight that were fired, the firm singled three out for actions that "failed to meet their professional responsibilities".

The other five, including the head of the firm's financial advisory business, were removed because of failures to prevent the actions or "hold others accountable for their behaviours". 

This brings the number of staff named by the firm for involvement in the leak to 12. Four former partners, including the one who originally shared confidential information, had already left the firm.

Ms Stubbins last week promised severe consequences for those involved in the scandal that has cost the firm major clients and forced it to spin off its lucrative public sector consulting business for A$1. The firm said its investigation was continuing in some areas. 

• Reuters