SYDNEY, May 31 (Reuters) - The Reserve Bank of Australia will not sign any new contracts with PricewaterhouseCoopers (PwC) Australia until a scandal over the firm's misuse of confidential government tax plans is sorted out, the central bank's governor said on Wednesday.
The "big four" firm is on the defense after a former Australian tax partner who was consulting with the government on laws to prevent corporate tax avoidance shared confidential drafts with colleagues to drum up business around the world.
As of May 16, the government had committed to contracts worth A$255 million ($173 million) with PwC in the current financial year alone, a finance department official told a parliamentary hearing last week.
"(We) have taken the decision to enter no new contracts with PwC until a satisfactory response has been forthcoming," Lowe said.
APRA had also spoken with major Australian banks about their ties to PwC, as recently as last week, added Lonsdale.
Persons:
Philip Lowe, " Lowe, John Lonsdale, Lonsdale, Steven Kennedy, Kristin Stubbins, PwC, Lewis Jackson, Sonali Paul
Organizations:
SYDNEY, Reserve Bank of Australia, PricewaterhouseCoopers, PwC, Prudential Regulation Authority, APRA, prudential, Thomson
Locations:
Australia, Australian