Interview with Peter Ryan on ABC Radio National

Subjects: PwC scandal, ASIC Senate Inquiry

E&OE……… ‍

Sabra Lane

As the scandal over confidentiality breaches by consulting firm PwC intensify, pressure is growing on the corporate watchdog to properly investigate the case. Liberal Senator Andrew Bragg says the regulator, the Australian Securities and Investments Commission, and other regulators are failing to rein in white collar crime and that consulting firms are, in his words, getting away with murder. Our senior business correspondent, Peter Ryan, is covering the story and he joins me now. Peter, this is going to be examined in Parliament next week, but what does Senator Bragg want to see?

Peter Ryan

Well, Sabra, Andrew Bragg is Chair of the Senate Economic References Committee, and that committee is preparing to really put the blowtorch on PwC and other regulators at coming Senate estimates hearing. Specifically, he's demanding to see the names of around 50 PwC partners who were allegedly leaked confidential information from a Treasury and Tax Office briefing about a crackdown on multinational tax avoidance. PwC had a workaround ready for clients hours after the then Treasurer, Joe Hockey, announced the crackdown in his 2015 Budget. Now, this is a complex maze of potentially ethical breaches. Its bewildered most people, including former regulators. But Senator Bragg said it's clear that ASIC needs to investigate how this occurred, which he says is PwC getting away with murder. And he's asked the Finance Minister Katy Gallagher for a breakdown on just how much government work PwC has underway at the moment.

Senator Bragg

This has been one of the most outrageous corporate actions in my lifetime. It's hard to believe that an organisation would steal effectively the government's secrets and give them away to their clients. Australia is a country now which has a higher level of white collar crime. And I believe that is the case because the regulators have been indolent and have not been prepared to enforce our laws.

Peter Ryan

Does ASIC need to be looking closely at this? Are you expecting an investigation?

Senator Bragg

Well, we have decided to expand our Senate Inquiry into ASIC to look specifically at the PwC matter because obviously we have a major problem because companies think they can get away with these things. Now, they only think they can get away with these things because law enforcement is so lax.

Peter Ryan

It's thought that as many as 50 PwC partners were in the loop about this confidentiality breach. How urgent is it for us to see the names of these actual PwC partners?

Senator Bragg

I don't see any case for holding back any of the information here. I think the Australian people would expect transparency. What we're talking about here is the Australian government seeking to get a reasonable return in terms of tax receipts, and then that initiative being undermined by the government's own advisor.

Peter Ryan

While your committee investigates at the political level, and presumably the Federal Police and ASIC take a very close look, should PwC be still working for the government or pitching for government work?

Senator Bragg

I've asked the Finance Minister, Katy Gallagher, how many government contracts PwC has. I'd like to understand exactly what work PwC is doing for the Commonwealth Government. I suspect the answer will be quite lengthy, and I'd like to review the information that I've sought from Minister Gallagher before making any statement about that.

Peter Ryan

Presumably, the confidentiality breaches could mean civil charges or civil counts for PwC, but could this develop into referrals on criminal counts?

Senator Bragg

That's a matter for the regulators and ultimately then the DPP. I don’t want to speculate on that. What I will say as a policy maker is that the corporate enforcement law culture in Australia is very weak and that has created a situation where companies can try on all sorts of dodgy things and they can expect to get away with murder.

Peter Ryan

The former Telstra CEO, Ziggy Switkowski, has been appointed to conduct an internal review for PwC, but is that review going to have credibility?

Senator Bragg

Look, I've always thought that internal reviews were a bit like putting Dracula in charge of the Blood Bank.

Sabra Lane

Liberal Senator and Deputy Chair of the Economics Legislation Committee, Andrew Bragg, speaking there with Peter Ryan.

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