PwC exits more than 10 countries to prevent scandals – report

PricewaterhouseCoopers has in over 10 countries shut operations it deemed too small, risky or unprofitable, in an effort to prevent reputational damage from scandals like those that have hit the firm in the past, the Financial Times reported.

PwC earlier this month cut ties with 10 accounting firms in Francophone Africa due to growing disagreements with local partners, according to the report.

Leaders of the local firms said they had lost more than a third of their business in recent years after pressure from PwC’s global executives to stop servicing high-risk clients, prompting exit discussions as early as last year.

The accounting giant was held responsible for auditing failures linked to property developer China Evergrande (3333), with its mainland China unit fined 441 million yuan (HK$465.53 million) and ordered to suspend operations for six months.

STAFF REPORTER