Australian Federal Police descend on PwC’s Sydney headquarters for Operation Alesia
The Australian Federal Police investigation into PwC’s government tax breach affair has stepped up a notch, with officers descending on the Big Four firm’s Australian headquarters in Sydney.
According to reports, the AFP officers will now spend the next few days searching through documents and computers at the accounting and consulting firm’s Barangaroo premises, with PwC stating that it’s cooperating with detectives.
The raid comes a full year and a half on from when Treasury first referred the matter to the AFP last May over the growing tax breach allegations, and ahead of the law enforcement agency’s scheduled appearance before Senate estimates next week.
It also follows further revelations last week regarding the role of the international firm in handling the local response, with its steadfast refusal to share the findings of an internal probe proving an ongoing needle for lawmakers. It was previously noted the AFP had been working with overseas counterparts to identify any potential criminal wrongdoing committed by partners abroad.
“This is a very serious matter and the public deserves to know who was involved and to what extent,” stated Greens senator Barbara Pocock, with the global office of PwC only having acknowledged that it disciplined six unidentified individuals abroad for minor infractions. “I hope the raid will shed further light on this scandal which has been shrouded in secrecy.”
Operation Alesia
Dubbed ‘Operation Alesia’, the AFP investigation is said to be examining whether four former PwC partners had committed offences under sections of the Crimes Act which concern the disclosure of official secrets and carry potential prison terms. It was also reported that the AFP had paid a visit to the Melbourne home of Peter Collins, the former PwC partner who instigated the affair.
The internal PwC correspondence submitted to parliament last week revealed the threat of network expulsion which was made to the Australian branch should it provide up-front information on the matter to local regulators or other government agencies without prior head office approval, with all decisions related to the accountability of individuals also requiring international sign-off.
The latest development comes as PwC continues to embed governance and cultural reforms in Australia in an effort to move on from the affair, having lost almost 300 partners and over 3,000 staff since the middle of last year – including those who crossed from its $600 million public sector business to join Scyne. PwC has stressed the current investigation relates solely to ex-staff.
PwC chief Kevin Burrowes informed the firm’s partnership that the raid had been expected; “We have been working with the AFP to facilitate its attendance, and we will continue to co-operate with its investigation. Despite the potential for distraction, let’s all encourage our teams to continue business as usual and remain focused on their important work with our clients and in the community.”
