Macquarie seeks KPMG guarantee data was not misused to win bank audit work

Macquarie Group Chairman Glenn Stevens expressed concerns on Friday that KPMG, the investment bank's prospective auditor, may have improperly utilized client data to secure a lucrative audit contract. During a parliamentary hearing in Canberra, Stevens requested KPMG to investigate whether the firm had the resources to serve as Macquarie's auditor, following the departure of several senior partners.

The bank plans to retain KPMG as its auditor in 2028, replacing PwC, with whom it has maintained a relationship of over 50 years.

Stevens stated that KPMG's response is expected shortly but has not disclosed a specific date. He emphasized that if the allegations against KPMG are proven, it would imply a violation of ethical standards that Macquarie cannot accept. Stevens expressed confidence that Macquarie still has time to reconsider the appointment of KPMG, but a final decision should be made promptly.

This controversy arises from a whistleblower's allegations, first disclosed in March, claiming that KPMG's staff used confidential client information to win audit contracts with Westpac and Dexus. Initially denying any wrongdoing, KPMG has since faced resignations of its CEO, audit chief, chairman, and the revelation of several implicated staff members either leaving or facing sanctions after the firm admitted to mishandling the whistleblower's complaint. KPMG has launched a fourth internal investigation to address the issue.

The scandal's impact extends to Australia's second-largest lender, Westpac, with its director Peter Nash resigning from the bank's board due to his association with KPMG. Westpac's audit committee chair Michael Ullmer criticized Nash for contacting former KPMG colleagues during the tender process. Former KPMG chairman Martin Sheppard reiterated that Nash's actions were unacceptable during the competitive bidding process.