PwC has shut down its operations in nine Sub-Saharan African countries following a strategic assessment. This decision was made in light of a media report suggesting that the firm had exited more than a dozen countries to mitigate potential scandals.
The global accounting firm, which functions as a network of locally owned partnerships, has closed its offices in the Ivory Coast, Gabon, Cameroon, Madagascar, Senegal, the Democratic Republic of Congo (DRC), Congo Republic, Republic of Guinea, and Equatorial Guinea, as stated in a release on its website dated March 31.
In response to inquiries regarding a Financial Times article published earlier that day, which claimed PwC had withdrawn from several countries considered too small, risky, or unprofitable, the firm referred to its official statement.
The decision reportedly stemmed from increasing tensions with local partners, who indicated that they had lost over a third of their business in recent years due to pressure from PwC’s global leadership to discontinue relationships with high-risk clients, according to sources cited by the Financial Times.
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The statement from PwC did not specify the rationale behind this decision.
The Financial Times report, referencing a registry of PwC entities along with local news sources, indicated that PwC has severed connections with its member firms in Zimbabwe, Malawi, and Fiji.
Since last year, PwC has experienced a significant loss of clients and workforce reductions in various countries.
PwC’s mainland China division faced a penalty of $62 million and a six-month suspension due to audit deficiencies associated with the $78 billion fraud involving property developer China Evergrande (3333.HK).
Additionally, last month, the United Kingdom imposed a fine of approximately $6 million on PwC concerning the audit of Wyelands Bank for the financial year 2019.
