KPMG Partners Face Parliamentary Hearing Over Document-Sharing Allegations

A parliamentary committee will question more than 30 witnesses on June 19 about allegations that KPMG partners misused confidential client documents to win audit contracts. The hearing stems from a 2024 whistleblower complaint alleging that board papers from construction company Lendlease were used to pitch for work with other clients, including Westpac and Dexus.

An initial internal review and an external review by law firm Ashurst did not substantiate the claims, but a second external review by law firm Allens remains underway and has identified additional instances of document sharing.

Labor senator Deborah O'Neill publicly raised the claims in March under parliamentary privilege. KPMG chief executive Andrew Yates and audit partner Julian McPherson resigned in May. The firm later issued a statement apologizing to the whistleblower and stating that the initial investigations fell short of expectations. Chief operating officer Eileen Hoggett was also demoted.

The corporate regulator ASIC confirmed last week that it had opened a formal investigation into three registered auditors who handled the whistleblower complaint. The investigation includes former chief operating officer Eileen Hoggett and audit partner Paul Rogers.

ASIC chair Sarah Court told a Senate estimates hearing that the focus is whether the conduct may breach duties under the Corporations Act, while noting limits on oversight of partnerships. Several governments have said they are reviewing existing contracts with the firm.

The Reserve Bank stated it would no longer use KPMG to run its whistleblower hotline. Lendlease, after a 30-year relationship, announced it will put its external audit contract out to tender next year.