KPMG Australia CEO Andrew Yates and national managing partner for audit and assurance Julian McPherson resigned on June 4 over mishandling whistleblower claims involving misuse of confidential information, sources said [1, 2]. The firm’s chief operating officer Eileen Hoggett also stepped down from her executive role on June 3 but remains an audit partner amid ongoing investigation [3].
The whistleblower, a former KPMG partner, alleged that KPMG partners improperly used confidential board documents from Lendlease to support bids for audit contracts at Westpac and Dexus [1, 3]. Labor Senator Deborah O’Neill said the documents were taken by KPMG lead partners, including Hoggett, and physically secured in her locker [3].
KPMG Australia initially rebutted the claims but later admitted its internal investigation lacked rigor and engaged external law firm Allens to conduct an independent review [1, 3]. Interim CEO Stan Stavros said he is “100 per cent committed and will ensure we approach the issues in the right way” [3].
The Reserve Bank of Australia (RBA) indicated it will likely not reappoint KPMG to run its whistleblower hotline service. RBA Governor Michelle Bullock stated, “I don’t think we’ll be reappointing them to the whistleblower service” [1, 2].
Rest pension fund, which manages A$105 billion for over two million Australians and relies on KPMG for industry analysis, is seeking further information about the whistleblower claims and its relationship with KPMG. A spokesperson said, “All decisions related to our external suppliers are made according to the best financial interests of our members, and in line with our supplier code of conduct” [1, 2].
The New South Wales government is also seeking assurances from KPMG about how confidential information is managed and whether personnel under investigation remain involved in government contracts [3, 2]. KPMG provides a range of services to Australia’s A$4.5 trillion pension system [1, 2].
The whistleblower’s allegations follow a series of professional services scandals in Australia since 2023, including PwC’s sharing of confidential government information and Deloitte refunding government for an AI-generated report error [3, 2]. Greens Senator Barbara Pocock called for stronger regulation, saying, “It’s time the government made these opaque, largely unregulated mega-partnerships accountable under the same corporate law, regulatory, whistleblower and tax regime as other large businesses in Australia” [1].
KPMG’s independent review by Allens is ongoing, and interim CEO Stavros leads efforts to address the firm’s internal issues [1, 3]. The next steps include responses from major clients and government bodies as they reassess engagements with KPMG.
