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A Singapore-based veteran will take over from Australia’s Kristin Stubbins as PwC works to stem ongoing fallout from its tax leak scandal.
The announcement, which was been made to staff on Sunday, will see Mr Burrowes — a PwC partner for the past 19 years who is currently heading up PwC’s Network Clients and Industries business in Singapore — take over from acting chief executive Kristin Stubbins, once his visa can be arranged.
At the same time, PwC has also confirmed plans to sell its government consulting operations, involving some 130 partners and 2000 staff, to private equity firm Allegro for $1, with Allegro agreeing to take over the liabilities of the business which is currently code name Bell.
Announcing the news, PwC said Mr Burrowes would lead the PwC Australia management team and “ensure the firm fully responds to the need to enhance leadership and governance and reinforce our values throughout the organisation.”
The move follows the firm’s global leadership stepping in to stem the fallout from the scandal at its Australian operations which saw former chief executive Tom Seymour stand down as chief executive in May. That followed revelations about its former head of international tax, Peter Collins, using information gained from advising the Australian Tax Office to help the firm’s global tax clients.
PwC Network Global Clients and Industries leader Kevin Burrowes.
Announcing the move, PwC’s New York based global chair Bob Moritz said PwC’s past leadership had “failed to meet the network’s code of conduct and uphold the network’s professional standards and values.”
He said the firm’s past actions were “not representative of the work and behaviours of PwC around the world.”
“I am deeply sorry to our clients, our broader stakeholders and our people,” he said.
Mr Moritz said Burrowes had been working with PwC’s largest clients over the past several years, and was an expert in PwC’s Network standards and governance structures.
“He will be a great asset to the firm,” he said.
“PwC Australia has significant work to do and I am confident that the steps they are taking with the Network’s support will result in a stronger firm.”
Ms Stubbins will remain acting chief executive until Mr Burrowes’ move to Sydney.
The chair of PwC’s Australia’s governance board Justin Carroll, said the firm “looked forward to welcoming Kevin to our firm and leveraging his decades of executive leadership, unique experience working with PwC’s largest global clients and his extensive knowledge of the PwC Network.”
PwC said Mr Burrowes’ key priority would be to “enhance the firm’s culture, with a focus on ethics and controls.”
“Kevin’s experience across other parts of the PwC Network ensures that as he takes over the leadership in Australia he brings a fresh perspective to the firm,” Mr Carroll said.
“He will work with his colleagues and management team to re-earn trust with PwC Australia’s stakeholders” Mr Carroll added.
He said Burrowes would work with PwC Australia’s new Chief Risk and Ethics leader, Tony O’Malley, and the wider management team to implement the recommendations of Dr Ziggy Switkowski’s independent review of PwC Australia.
The review, which will be published in September, as well as implement any other necessary changes that need to be made to improve the firm’s culture and standards.
Mr Burrowes said he was “honoured to have been asked to lead an organisation that has been part of the Australian business community for 150 years.”
“Along with the leadership team, I will work tirelessly to increase transparency and repair trust with our stakeholders, while also enhancing our governance and culture.”
PwC also confirmed plans to enter into the deal with Allegro to sell off its government business, with both parties targeting a binding agreement by the end of July.
The divestment will create two independent firms, while ensuring that there will be no disruption in vital services to public sector clients.
PwC Australia said it would work with Allegro Funds to ensure a seamless transition.
Mr Carroll said PwC had taken the step “because it is the right thing to do for our public sector clients and to protect the jobs of some 1,750 people in our government business.
“This transaction will result in the first pure play, at scale, government business in the market,” he said.
“This was an extremely difficult decision, but we are determined to take all necessary steps to protect the jobs of our people and re-earn the trust of our stakeholders.”
The divestment of this business, which represented around 20 per cent of the firm’s FY23 revenue, will impact PwC’s future size and operations.
However Mr Carroll said it would allow the firm “to move forward with predictability and focus, and ensure stability for the rest of PwC’s clients in other parts of the business.”
“This transaction marks a new direction for PwC Australia and puts us on a path for success as we focus on our people and serving clients across Australia and our critical role in supporting the capital markets,” he said.
The moves are the latest in PwC’s attempts to stem the fallout from the scandal.
Mr Burrowes first joined PwC in 1986. His most recent role at the firm is Global Clients and Industries Leader, based in Singapore.
Before that he was a member of PwC UK’s executive board for four years where, as Managing Partner, he led on Clients and Markets for the UK firm.
Mr Burrowes has also held senior executive positions at IBM, Credit Suisse and Royal Bank of Scotland.
He has been a PwC partner for 19 years, having rejoined PwC UK in 2009.
The move comes as corporate regulator the Australian Securities and Investments Commission (ASIC) is considering taking action against the firm’s former head of international tax, Peter Collins.
ASIC deputy chair Sarah Court told a Senate inquiry last week that the corporate regulator was examining the firm’s use of confidential government tax briefings.
She said ASIC was looking at the conduct of Mr Collins as well as “any others that may have been involved in relation to the alleged conduct.”
PwC had handed a list of 63 names to another Senate committee of people who have been copied into emails regarding the tax information but these have not been made public.
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