The latest parliamentary inquiry into KPMG's handling of confidential client data has revealed a disturbing culture of ethics disregard, with multiple partners implicated in leaking sensitive information to colleagues pursuing lucrative audit contracts. The alleged leaks affected high-profile clients such as Lendlease and Optus, and involved at least three partners.
KPMG has admitted to internal leaks but initially resisted providing its investigation findings to regulators. The firm's London-headquartered international arm issued a general apology, yet denied direct responsibility for the actions. Notably, KPMG staff leaked private information to colleagues who secured lucrative audit contracts with clients like Westpac, Dexus, and Telstra.
At the centre of the scandal is an email dated 30th May 2024 from a whistleblower to Julian McPherson, then head of audit. The email alleged that KPMG partners prioritised 'revenue growth at all costs' over ethics, alongside other workplace grievances. Following this email, the whistleblower claimed he was denied a pay rise, had client work withdrawn, and faced threats of termination. Both former CEO Andrew Yates and McPherson acknowledged they mishandled the whistleblower's complaints, though McPherson denied explicitly threatening termination.
The inquiry also scrutinised KPMG's engagement with external legal counsel. The firm enlisted two prominent international law firms – UK-headquartered Ashurst and Sydney-based Allens – to investigate the whistleblower’s claims. Neither firm directly interviewed the whistleblower, however. Ashurst initially advised on employment issues in February 2025, followed by KPMG's internal investigation advice. Allens, with a long-standing relationship with KPMG, provided legal advice in December 2025 stating it found no evidence of the allegations. KPMG later deemed these investigations insufficient, commissioning a renewed investigation by Allens in March 2026 after the allegations became public.
The whistleblower's case also involved KPMG International, where Anne Collins confirmed that the international team received his concerns in June 2025 and forwarded them to London-based law firm Freshfields. However, the whistleblower stated that Freshfields later informed him that KPMG International was unaware of his specific concerns and lacked authority to investigate the conduct of the Australian firm. It wasn't until Senator Deborah O’Neill publicly raised the allegations in parliament in March 2026 that KPMG substantiated a full investigation.