PricewaterhouseCoopers (PwC), a leading accounting firm, is being urged to demonstrate that it is not exploiting its intricate global setup to avoid accountability for aiding in “illegal money transfers and undermining sanctions.”
In a letter addressed to PwC, Dame Margaret Hodge, an experienced advocate against corruption and a member of the Labour party, expressed worries about the involvement of the London-based company in ongoing investigations by various news outlets, such as the recent Cyprus Confidential leaks.
She raised concerns about the reported role of PwC Cyprus in a potential transfer of £1bn worth of shares in the tourism company Tui, which is owned by Russian businessman Alexei Mordashov, to his significant other.
According to leaked documents, the transfer attempt occurred on the same day that Mordashov was sanctioned by the EU. As a result, Cypriot police have initiated a criminal probe into the incident.
Hodge requested clarification from PwC on whether they consulted with their head office in London or any other division of the company before attempting to transfer the shares.
The examination of the confidential files from Cyprus revealed that 39 of PwC Cyprus’ clients were later listed on sanctions registers in 2020 by the US, UK, EU, or Ukraine.
“If these accusations are proven to be accurate, it would emphasize a concerning pattern,” stated Hodge, in reference to prior inquiries that exposed the involvement of PwC offices in the Luanda Leaks, Pandora Papers, and a scandal at PwC Australia.
According to her, PwC has consistently maintained that these were individual incidents occurring in specific locations, and were carried out by separate legal entities within the global network of PwC.
However, she expressed worries that this business model may have allowed PwC to establish a globally recognized reputation while avoiding accountability as a “professional enabler,” contributing to the concealment of reputational damage, illegal money transfers, and undermining of efforts to impose sanctions.
Hodge stated that due to PwC’s status as a worldwide accounting firm with a universal governing board, there is an assumption that the company should take responsibility for all actions within its entire network.
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“It is unacceptable that PwC is using its name as a prominent UK and global household brand while evading responsibility and disregarding applicable laws and regulations.”
Hodge requested that the company share thorough details about their efforts to investigate and resolve the concerns she brought up.
A representative from PwC stated that any accusations of not following laws and regulations are treated with utmost seriousness. They are thoroughly investigated and appropriate measures are taken if needed.
Source: theguardian.com
