Review: Internal emails reveal PWC's role in the oligarch's Tui affair

At the end of February and beginning of March 2022, employees at the global auditing giant PWC will be emailing each other. They seem to be in a hurry to finalize a deal in which Alexei Mordashov transfers ownership of his shares in Tui to a company in the British Virgin Islands.

"Urgent" and "Please approve" are the words of emails and documents leaked from Cypriot company fixer Cypcodirect. Together with PWC, they administer Mordashov's holding company in Cyprus. This is revealed by Uppdrag granskning through the international investigative cooperation Cyprus Leak.

Spokesperson: Everything has been done openly

The timing of the deal is delicate. On 28 February, the EU imposes sanctions on Mordashov in response to Russia's invasion of Ukraine. Despite the fact that these have come into effect, PWC and Cypcodirect continue to handle the deal – which turns out to be a smokescreen. Control of the shares, worth more than $15 billion, is transferred to a company in the British Virgin Islands controlled by the mother of Mordashhov's children.

A spokesperson for Alexei Mordashov says that everything was done openly and legally. Now, the Cypriot Ministry of Finance confirms that a criminal investigation is underway into the Tui affair, but does not comment on who the investigation concerns. Mike Davis, spokesperson for PWC globally, writes in an email to Uppdrag granskning that PWC Cyprus is not aware that a criminal investigation is ongoing.

PWC: Taking sanctions seriously

Over the years, PWC has been criticized globally for sitting on two chairs, both as auditors and consultants in tax matters. A new survey by Uppdrag granskning shows that PWC in Sweden has received more than half a billion kronor in the past three years for work carried out for municipalities and regions.

Despite the public assignments, the Swedish CEO, Sofia Götmar-Blomstedt, does not want to answer questions about arrangements in tax havens and possible conflicts of interest.

Instead, PWC's global press department responds that it takes the application of sanctions very seriously. Following the Russian invasion of Ukraine, PWC Cyprus has terminated relationships with approximately 150 client groups.