KEY POINTS
- PwC shut operations in nine Sub-Saharan African countries after a review.
- Local partners cited tensions over dropping risky clients as reasons for business losses.
- The firm faces fines and scrutiny over audit failures in multiple countries.
PwC shut operations in nine Sub-Saharan African countries last month after conducting a strategic review, the Big Four accounting firm said. This comes in response to a media report that stated the company exited more than a dozen countries to avoid scandals.
PwC, which operates as a global network of locally owned partnerships, confirmed that it had shut operations in the Ivory Coast, Gabon, Cameroon, Madagascar, Senegal, the Democratic Republic of Congo (DRC), Congo Republic, the Republic of Guinea, and Equatorial Guinea. The company stated on its website on March 31.
Firm faces mounting challenges and pressures
The decision followed mounting differences with local partners, who reportedly lost over a third of their business in recent years. This decline occurred after pressure from PwC’s global executives to drop risky clients. The firm directed Reuters to the statement in response to queries regarding a Financial Times article published earlier in the day.
Some partners stated they lost over a third of their business in recent years. Despite these challenges, PwC’s statement did not address the specific reasons for these moves.
PwC’s troubles extend beyond Africa
The FT report also indicated that PwC had severed ties with member firms in Zimbabwe, Malawi, and Fiji. PwC has faced a client exodus and layoffs across countries since last year.
PwC’s mainland China unit was fined $62 million for audit failures tied to property developer China Evergrande. The firm is working to rebuild relations with Saudi Arabia after the kingdom suspended activities with PwC.
