PwC has agreed to remove employees involved in the leak and utilization of confidential Australian tax plans from government projects, according to a senior government official testifying at an inquiry on Thursday.
The accounting firm has become embroiled in a nationwide scandal following the disclosure that it utilized privileged information concerning proposed tax legislation to attract clients.
On Wednesday, the Australian Treasury forwarded the issue to the police for a criminal inquiry.
Jenny Wilkinson, Secretary of the Finance Department, informed a Senate committee that PwC had agreed to exclude staff “directly involved and with knowledge” of the breach from ongoing and future contracts until the completion of an internal review in September.
PwC’s spokesperson chose not to provide any comments regarding the issue.
Previously, the firm had expressed its commitment to learning from its mistakes and stated that it would fully cooperate with any investigations related to the incident.
Related: PwC faces further government wrath after tax plans leak
Wilkinson emphasized that she regarded PwC’s breach of confidence and trust with the Treasury, as well as the firm’s subsequent handling of the situation, as a grave matter.
Furthermore, she suggested adjusting future contracts to grant the government more authority to terminate agreements. This proposal comes amid increasing calls for the cancellation of PwC Australia’s existing government contracts and a ban on further work following the scandal.
Minister for Home Affairs Clare O’Neil acknowledged that existing contractual obligations hinder the government from terminating its current agreements with the auditor due to legal limitations.
“We face legal constraints around existing contracts, but I can tell you there is some furious work going on within government to understand what the legal constraints are on us here,” she said.
According to a finance committee official who testified before the Senate committee, the Australian Government has committed to contracts worth $255.2 million with PwC in the current fiscal year as of May 16.