KPMG Australia is facing a widening parliamentary inquiry following revelations that partners leaked confidential client information to gain competitive advantages. The firm has admitted to significant ethical failures, leading to the resignations of its CEO, Andrew Yates, and chair, Martin Sheppard.
Evidence presented to the inquiry confirms that KPMG partners shared proprietary data from Lendlease and Optus with colleagues bidding for audit contracts at Westpac, Dexus, and Telstra. The inquiry also uncovered a systematic failure to protect a whistleblower who raised concerns about “revenue growth at all costs” in May 2024. The employee reported that instead of investigating the claims, the firm withdrew his client work, denied him a pay rise, and threatened termination.
The Australian Securities and Investments Commission (ASIC) has criticized the firm for its initial refusal to cooperate, noting that current regulatory frameworks limit its power to oversee large partnerships. Sarah Court, chair of ASIC, stated that the agency lacks the authority to directly regulate these entities in the same manner as corporations, calling for urgent legislative reforms to partnership and whistleblower laws.
KPMG International has issued an apology, though it maintains that it took appropriate steps to address the internal reports. The firm has since begun providing some internal investigation documents to the inquiry, though committee chair Senator Deborah O’Neill noted that the disclosure remains incomplete. The Australian government has announced it will consider reforms to whistleblower protections by late July.