“Kevin’s experience across other parts of the PwC network ensures that as he takes over the leadership in Australia he brings a fresh perspective to the firm,and he will work with his colleagues and management team to re-earn trust with PwC Australia’s stakeholders,” said PwC governance board chair Justin Carroll.
He also thanked acting CEO Kristin Stubbins,who will remain in the role until Burrowes completes the Australian immigration process.
‘Project Bell’:Allegro Funds buys PwC’s government business
The company also confirmed on Sunday that it would sign a binding agreement with Allegro Funds to sell its federal and state government business,which represented 20 per cent of the company’s revenue for the 2023 financial year,for $1 by the end of July. The deal encompasses all public sector work,including healthcare and education.
The deal will create two independent firms and will see PwC Australia exit completely from all government advisory work. Around 1750 PwC staffers will become employees of the new company.
“We have taken this step because it is the right thing to do for our public sector clients and to protect the jobs of the[circa] 1750 talented people in our government business,” said Carroll. “This transaction will result in the first pure play,at scale,government business in the market.”
Loading
An industry source close to the matter said the new business will move away from a partnership structure to become a company that will have a chairman and board of directors with a corporate governance structure similar to an ASX-listed company.
The new entity,currently referred to as ‘Project Bell’,will be rebranded with a new name and will include PwC partners Tim Jackson and Diane Rutter from the Sydney office;Ben Neal and Josh Chalmers from the Canberra office;Kate Evans and Adrian Box from the Melbourne office;Chris Rogan from the Brisbane office;Jamie Briggs from Adelaide;and Tricia Tebbutt from Perth.
The partners will assemble a board of directors,including a chairman,who will then conduct a search for a chief executive.
PwC is holding briefings to tell partners about the changes. The deal is expected to be finalised within weeks.
NSW minister for finance Courtney Houssos said the state government would take a close look at how the deal would affect the provision and delivery of government services.
“The onus will be on Allegro Funds to demonstrate the business it will purchase from PwC Australia is able to meet the high standards required to be a pre-qualified provider within the NSW government’s system of professional services procurement.”
“Once a sale has been finalised,the pre-qualification status of the divested business will be evaluated in relation to any NSW Government arrangements for the provision of professional services. In addition,the NSW government will need to assess any existing PwC Australia engagements being potentially transferred to the divested business under the relevant arrangement’s contractual terms,” she said.
The Business Briefing newsletter delivers major stories,exclusive coverage and expert opinion.Sign up to get it every weekday morning.