Monday, June 26, 2023

New PwC chief executive Kevin Burrowes parachuting in, damaged gov't consulting arm sold to Allegro Funds for $1

The future of the consulting firm PWC remains under cloud with a new chief executive Kevin Burrowes being parachuted in from Singapore to rebuild the damaged business.

But is that going to help with the survival of PWC's once lucrative business even though its government consulting arm is being sold off to a private equity firm - for just one dollar?

That might sound like a firesale bargain but the suitor private equity company Allegro would know the risks given the massive liabilities its taking on from a damaged business.

And it's a major challenge - rebuilding trust and confidence in a company the broke confidentiality agreements by undermining a new multinational tax avoidance law - working both sides of the street to make money from clients.

But the big change is that unlike PWC, Allegro will only work with "public sector" clients from federal and state government departments and agencies - it won't work for corporate clients and will be a purely government business to eliminate the risk of conflicts that's got PWC into so much hot water

Things are moving quickly and Allegro's hope is to have a binding deal by the end of July and a new CEO Kevin Burrowes will be in Sydney soon.

This is critical for PWC staff caught up in the scandal where 130 PWC partners and up to 2000 staff will move over to Allegro.

Investigative author and former policy advisor Tom Ravlic tells me it's not just about rebuilding the old PWC government business - but protecting the jobs of PWC staff who did nothing wrong.

Here's my analysis on ABC Newsradio

No comments:

Post a Comment

What's your view on this?