PwC Australia will sell its government business for A$1 and recruit a new CEO

PwC Australia signed an exclusive contract with the private equity company Allegro Funds on 25th June to sell its government practice for A$1, as it hired a Singaporean executive to lead the local firm through the repercussions from a nationwide crisis.

The incident, which surfaced in January, focuses on a former PwC tax consultant who advised the federal government on rules to prevent corporate tax evasion and shared sensitive data with coworkers who subsequently used it to pitch for business with international corporations.

On June 23rd, PwC announced that it had successfully entered into an exclusivity agreement with Allegro Funds to divest its federal and state government business for A$1 ($0.67), on 23rd June, amid a mounting pushback from key government clients. PwC and Allegro both want to reach a binding deal within a month, according to a statement on the professional services firm’s website. According to a source who was not licensed to speak with the media, if the sale goes through, Allegro would form the new company as a corporation rather than a partnership. According to the source, Allegro and the former PwC partners will divide ownership, but the exact split is unknown. According to PwC, the disposal accounted for almost 20% of sales in fiscal 2023. Last fiscal year, the company earned A$3 billion ($2 billion).

The agreement aims to shield the firm’s government advisory business and regain trust with the numerous departments and agencies that have barred the firm from taking on new clients.

Labour Senator Deborah O’Neill, who assisted in the leaking of a cache of confidential PwC emails last month, stated that the firm cannot “phoenix their way out” of the crisis unless the complete names of those engaged in the secret document breach are revealed.