Over 15 PwC tax professionals quit; to join rival KPMG

Over 15 senior executives of the PricewaterhouseCoopers (PwC), whose Bangalore-based arm audited accounts of scam-hit Satyam Computer Services, have quit and would be joining PwC's global rival KPMG.

"Dinesh Kanbar, executive director, PwC, has resigned, along with some tax executive directors," said PwC in a statement here today.

Kanbar's resignation comes within a month of Ramesh Rajan stepping down as chairman of PwC India. Rajan was replaced by Gautam Banerjee, former executive chairman of PwC Singapore.

PwC has been in the news after two auditors belonging to Bangalore-based PriceWaterhouse were arrested by the Hyderabad police following the disclosure of the Rs 10,000-crore Satyam accounting fraud.

Although the PwC did not disclose the number of senior tax experts who have quit the firm, sources said more than 15 senior professionals have resigned and would be joining the KPMG, another global auditing and consultancy firm.

PwC has about 1,200 tax professionals and 55 executive directors servicing domestic and international companies.

PwC has appointed Ketan Dalal and Shyamal Mukherjee as the new joint leaders for the auditing firm's tax and regulatory practice, the statement said.

Following the Satyam scam, the police had arrested Srinivas Talluri and S Gopalkrishnan of PW-Bangalore for alleged involvement in the accounting fraud.

The auditing firm took several steps, including setting up a high-profile advisory body, headed by former cabinet secretary Naresh Chandra to restore its image.

The other image-building initiatives include appointment of assurance leader, risk and quality leader and revamp of the Hyderabad office, PwC had said in a statement earlier in the month.

On the appointment of Dalal and Mukherjee, PwC said, "Both (are) senior and highly reputed tax professionals and have demonstrated outstanding leadership skills. We are confident that under their able leadership, the tax practice will soar to newer heights."

PwC is one of the Big-4 global auditing firms. The others are KPMG, Delloite and Ernst and Young.