Blitz Bureau
NEW DELHI: : PwC has pulled out of over a dozen countries deemed risky or unprofitable, in a strategic move to distance itself from recent audit scandals, according to a Financial Times report.
The firm ended relationships with 10 partner firms across Africa earlier this month following prolonged tensions. Local leaders claimed they had lost over a third of their business in recent years, after pressure from PwC’s global leadership to cut ties with high-risk clients. Talks for the exit reportedly began last year.
PwC has also severed ties with its member firms in Zimbabwe, Malawi, and Fiji, as noted in its entity register and local media.
The decision comes amid mounting global scrutiny. In China, PwC’s local unit was hit with a record 441 million yuan ($62 million) fine and a six-month suspension over its audits of Evergrande. Authorities said PwC failed to detect or report the property developer’s $78 billion fraud between 2018 and 2020. PwC had been Evergrande’s auditor for nearly 14 years before parting ways in 2023.
In the UK, regulators fined PwC 4.5 million pounds ($5.96 million) over its flawed 2019 audit of Wyelands Bank. And in Australia, a senior tax partner’s misuse of confidential government data triggered a political backlash, prompting leadership changes within the firm.
Adding to its troubles, PwC is currently banned from working with Saudi Arabia’s sovereign wealth fund for one year. Efforts are reportedly underway to repair ties with the kingdom.