Detailed Outline

This Direction deals with the procurement of services by or for a government agency within the meaning of the Public Works and Procurement Act 1912 (as amended).

Context

On 25 June 2023 PwC Australia (“PwC”) announced plans to divest its federal and state government business (“Scyne Advisory”) to private equity firm, Allegro Funds (“Allegro”). Subsequently, on 4 July 2023, PwC and Allegro confirmed a binding term sheet has been executed by the parties, with the transaction to be completed by 31 August 2023 or shortly thereafter (“Transaction Completion”), noting both Scyne Advisory and PwC would be seeking to provide specific services to NSW Government.

Given further work and consultation is required to address risks concerning ongoing services to be provided by Scyne Advisory and PwC respectively to NSW Government, and the practical impacts across different procurement arrangements and procuring agencies within NSW Government, the Procurement Board has determined the following measures to mitigate service delivery risks.

Interim Approval Process of New Engagement Contracts with PwC Entities (see below)

This Direction directs all NSW Government agencies to seek prior written approval of the Department Secretary in the relevant agency’s portfolio of agencies of any new (including extension or variation of any existing) PwC engagement contracts.

Accordingly, the Board directs:

1. Each Department’s central procurement function to set up and manage any approvals of new (including extension or variation of existing) engagement contracts with PwC entities including reasons for such engagements.

2. Any delegation of authority of such approvals can be provided to an agency head, Chief Executive Officer or Procurement Board member, and must be approved in writing by the Department Secretary in the relevant agency’s portfolio of agencies.

3. Each Department’s central procurement function to report on items 1 and 2 above to the Procurement Board as set out under “Interim Process Reporting” below.

4. All other NSW Government procurement laws, policies and guidelines must be followed in the engagement of PwC.

The interim approval process does not apply to existing engagement contracts with PwC entities (unless and until such engagements are extended or varied).

Interim Approval Process Period

This interim approval process of any new (including extension or variation of any existing) engagement contracts with PwC entities will commence with approval and issuance of this Direction and remain in place until this Direction is withdrawn.

Interim Process Reporting

Each Department’s central procurement function is required to report details of any new (including extension or variation of any existing) engagement contracts with PwC by agencies within their portfolio to the Procurement Board as soon as possible in writing via [email protected].

Note: agencies are required under the State Records Act 1998 to create, manage and protect records including records of all engagements with professional services firms, including PwC.

This Direction takes effect from 14 July 2023 until withdrawn.