Australia’s fourth largest pension fund UniSuper on Monday decided to cut its ties with the Australian arm of PwC in the aftermath of the accounting firm leaking critical government tax plans, which first surfaced in January.
In a statement, UniSuper said that it had to take such a decision due to concerns being raised over the recent scandal at PwC. As a result, the pension fund has suspended new contracts for the “immediate future”.
“While PwC has provided the Fund with an assessment that the relationship we have built over years has not been affected by this situation, we have sought further assurances on this matter,” Reuters quoted UniSuper spokesperson as saying.
UniSuper, which manages around $77 billion in total funds, has now joined four other major pension funds, who in total manage funds of over $650 billion.
The Australian pension fund’s decision came a day after the accounting giant terminated eight of its partners, including the former CEO, in a bid to rebuild trust following the scandal.
Earlier this year, a former PwC partner, who advised the Australian government on anti-tax avoidance laws, shared confidential information with colleagues, who used this information to attract more business.
After the scandal broke out in January this year, PwC has been losing high-profile clients, including the Reserve Bank of Australia. The scandal also forced the accounting firm to sell its government consulting business for just one Australian dollar.
(With inputs from Reuters)
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