Leaks, lawyers and a whistleblower: how did KPMG’s failings emerge – and could more have been done?

KPMG partners leaked client information and mishandled the whistleblower who raised the alarm, an inquiry has heard. Top global and Australian managers, three law firms and government regulators all missed the signs. The firm has admitted unethical internal leaks but initially refused to hand over its investigations to regulators. Its London-headquartered international arm has issued a general apology but denied responsibility. What did KPMG do? KPMG staff leaked confidential Lendlease and Optus information to colleagues who were applying for lucrative audit contracts at Westpac, Dexus and Telstra. At least three partners were involved. The whistleblower raised alarm at colleagues’ behaviour in an email on 30 May 2024 to Julian McPherson, then the head of audit. The email alleged KPMG partners were pursuing “revenue growth at all costs”, alongside other workplace complaints, a parliamentary inquiry heard on Friday. KPMG’s website says : “Acting with integrity is at the heart of our values and we all need to make the right decision by speaking up!!!” The whistleblower told the inquiry that KPMG denied him a pay rise, withdrew his client work, then threatened to sack him. KPMG’s former CEO Andrew Yates told the inquiry he initially focused on the whistleblower as an HR issue. …