A review of the company that has acquired PwC’s government consulting business has given Commonwealth agencies the all clear to award new contracts to the new entity, or transfer existing PwC contracts.

Allegro Funds announced in July  it had acquired PwC’s government consultancy business as an independent company after the scandal surrounding PwC’s misuse of confidential treasury information came to light.

A finance department procurement policy note updated on October 12 says PwC approached the Commonwealth seeking to transfer existing contracts to Scyne, including whole-of government contracts.

The note says finance, which has taken over responsibility for government dealings with Scyne, has examined the “ethical soundness” of the company.

Its review, supported byEthics Centre executive director Simon Longstaff, found that Scyne “has the appropriate governance, accountability and ethical frameworks in place to contract with the Commonwealth”.

It also found that no individuals involved with the recent scandal had transferred to the new entity.

Commonwealth entities can now consider contracting with Scyne in the same way they consider other tenderers, including considering novation of existing PwC contracts to Scyne.

Department of Finance

“Commonwealth entities can now consider contracting with Scyne in the same way they consider other tenderers, including considering novation of existing PwC contracts to Scyne,” the note says.

Finance will continue to actively monitory Scyne for at least the next 12 months, the note says.

It says it is finalising novocation requirements from PwC to Scyne and when this is done, Scyne will be listed as a supplier under the Management Advisory Services Panel.

A novation will effectively substitute Scyne for PwC without changing the rights and obligations under the original contract, which can be transferred to the new party.

Entities with existing contracts or panels involving PwC will need to consider whether such arrangements should be novated to Scyne, Finance says.

“Entities may need to seek advice on the legal, financial and contract delivery implications of novating existing arrangements, particularly for more complex, operationally sensitive, high value or high risk-risk arrangements,” it adds.

More information about novation is available here.