Accounting giant PwC is being sued for more than $1.5 billion for allegedly providing incorrect advice to the group formerly headed by and founded by Ron Brierley.
PwC deny liability, however a judgement at Wellington’s High Court from Associate Judge Kenneth Johnson related to allegations of advice provided to various Brierley entities including BIL NZ Treasury, GL Management PTE, GL and Brierley Holdings between 1998 and 2018 regarding the manner in which historic losses should be treated. The allegations made relate to the recovery of some $1.58 billion in losses.
BIL NZ Treasury and Brierley Holdings are New Zealand registered companies, owned by GL, which is based in Bermuda, Companies Office records show. GL Management PTE is not registered in New Zealand.
The losses would only be of value to the company if and when they generated income, against which they could offset, the Judge said.
“At the time that the plaintiffs engaged PWC, there appears to have been no obvious prospect of that.”
The companies needed to find a way of generating income, internally or by the acquisition of a new, income-generating business but in the meantime they needed to ensure that the losses could be carried forward year-on-year until they could be used.