KPMG Australia facing 'many more' whistleblower claims

A parliamentary committee has heard that KPMG Australia has faced numerous whistleblower claims regarding the misuse of confidential client data. The scandal emerged in March after an anonymous whistleblower alleged that KPMG used confidential client information to bid for audit contracts. KPMG initially denied the claims but has since acknowledged mishandling the complaint and launched a fourth internal investigation.

KPMG's CEO, audit boss, and chairman have all resigned in the wake of the allegations. Deborah O'Neil, the Labor party senator who chairs the committee, stated that there are "many, many more" people reporting similar misconduct. KPMG CEO John Sams acknowledged major failings and emphasized the need to examine the company's culture.

Former chairman Martin Sheppard confirmed that another whistleblower, who alleged misconduct in the firm's tax division, received a settlement in 2024. The committee heard that KPMG used data from Lendlease and Optus clients to bid for work with Westpac, Dexus, and Telstra. Optus called KPMG's conduct an "egregious and flagrant breach of professional duties."

Several KPMG partners, clients, and lawyers testified before the committee, including former audit partner Eileen Hoggett, who admitted to storing Lendlease board papers in her locker. Lawy firm director Peter Nash and Macquarie Group Chairman Glenn Stevens also resigned or expressed concerns about KPMG's conduct. The committee's findings have reignited calls for reforms in the Big Four accounting firms in Australia.