KPMG Australia Names Michael Ebeid Chair as Martin Sheppard Resigns Amid Inquiry

KPMG Australia appointed Michael Ebeid chair on Thursday after Martin Sheppard resigned while under investigation by a parliamentary inquiry into the firm’s ethical failings. ” Ebeid apologized on Thursday and said he would not have made the claims had he known the full extent of KPMG’s shortcomings.

” Ebeid was one of three independent board members who oversaw KPMG’s investigation into a whistleblower’s allegations.

O’Neill made the allegations public in a speech on 24 March. KPMG’s deputy chair Carmel Mortell alerted Ebeid and colleagues to the speech on 25 March. KPMG admitted its own investigations were not rigorous enough and acknowledged that at least three staff leaked confidential Lendlease and Optus information to colleagues applying for audit contracts at Westpac, Dexus and Telstra.

Sheppard refused to share investigation documents with the committee, citing legal privilege. Ebeid was the only independent director to defend the claim. Sheppard shared some documents after hearings on 19 June and resigned on 23 June.

The federal government stated on Wednesday it would consider splitting up the Big Four firms and capping partner numbers. Ebeid said he respected O’Neill and the committee and would engage constructively. In KPMG’s announcement he said he would accelerate the appointment of a new chief executive and suggested more top staff could be replaced.