SYDNEY, May 31 Reuters The Reserve Bank of Australia will not sign any new contracts with PricewaterhouseCoopers PwC Australia until a scandal over the firm39;s misuse of confidential government tax plans is sorted out, the central bank39;s governor said on Wednesday.

The big four firm is on the defense after a former Australian tax partner who was consulting with the government on laws to prevent corporate tax avoidance shared confidential drafts with colleagues to drum up business around the world.

It faces missing out on lucrative Australian government contracts as a growing chorus of politicians, ministers and officials call for PwC to be blacklisted until it satisfactorily responds to the scandal.

As of May 16, the government had committed to contracts worth A255 million 173 million with PwC in the current financial year alone, a finance department official told a parliamentary hearing last week.

Reserve Bank of Australia RBA Governor Philip Lowe told senators on Wednesday he was appalled by the breach and the RBA would not line up PwC for any work until the bank was satisfied the issue had been resolved.

We have taken the decision to enter no new contracts with PwC until a satisfactory response has been forthcoming, Lowe said.

A satisfactory response includes both complete transparency and accountability for those involved.

Australian Prudential Regulation Authority APRA chair John Lonsdale told the hearing ethics would be a key factor in any future…