Federal senators have accused senior leaders in Australia's accounting and auditing industry of behaving disgracefully as more revelations emerge about KPMG's whistleblower scandal.
At a parliamentary hearing in Canberra on Friday the former head of audit at KPMG Australia, Julian McPherson, apologised to a whistleblower after the committee heard the unnamed individual had allegedly been pressured to leave the firm.
The committee also heard that the whistleblower's computer had been covertly searched because senior KPMG executives were worried that they would leak confidential information about the firm's business.
When senior executives from Chartered Accountants Australia New Zealand (CA ANZ) appeared before the committee, senators asked them to explain what was going on in the industry.
Senators pointed to the PwC tax scandal in 2023 , when it was revealed that senior partners at the accounting firm PricewaterhouseCoopers (PwC) Australia had misused confidential government tax information.
Now KPMG Australia is embroiled in a series of allegations about the misuse of confidential client information, which have led to a series of high-profile resignations and demotions at the firm in recent months, and senators want to know how Australia's accounting industry is being regulated.
The senators demanded to know why there had been so many scandals in the sector over the last few years. ( ABC News: Stuart Carnegie )
Irreparable breach of trust
Starting on Friday morning, the inquiry heard evidence from a roll call of former and senior KPMG Australia executives, Lendlease executives, and senior leaders from Chartered Accountants Australia and New Zealand (CA ANZ).
Revelations emerged about KPMG Australia's alleged misuse of confidential information belonging to its client Lendlease, its alleged treatment of a KPMG whistleblower, and more details about a third confidentiality breach at KPMG involving another client, Optus.
Lendlease chair John Gillam told senators that his company had decided to part ways with KPMG over the breach of trust. The construction giant has used KPMG to audit its books for 68 years.
Lendlease chair John Gillham (left) and chief executive Tony Lombardo. ( Australian Parliament )
When senior executives from CA ANZ appeared, they were asked to explain why the by-laws that govern the behaviour of its members (including KPMG) had failed to stop these major scandals occurring in recent years.
"These are your members!" Liberal senator Paul Scarr said to them.
"Every accountant that's doing the right thing, who's a member of CA ANZ, I feel for them.
"There should be a revolution in the streets. This has failed.
"[It is a] systemic failure in terms of regulating this important profession."
Paul Scarr issued some scathing remarks during the hearing. ( ABC News: Stuart Carnegie )
Senator Scarr said the fact that these scandals involved the most senior members of the profession was extremely concerning.
"We had those awful revelations in relation to PWC," he said to Ainslie van Onselen , CA ANZ's chief executive officer.
"And now I'm sitting here looking at KPMG and we've got the chief executive officer gone, chief operating officer demoted, lead audit partner for Lend Lease removed from that audit, sanctioned, and the lead audit partner of Westpac sanctioned. Leaders of the profession.
"If you have senior members of the profession who are your members, senior members, bringing on the next generation, and these egregious breaches are occurring, and they're only disclosed because Senator [Deborah] O'Neill and this committee, years after the event, took evidence from a whistleblower and used parliamentary privilege to put them in the public light , I'm putting it to you, Ms van Onselen, that CA ANZ has failed."
Andrew Yates faced a grilling during the hearing into the audit scandal. ( ABC News: Stuart Carnegie )
I'm not a 'bad apple': Former CEO
KPMG Australia's former chief executive officer Andrew Yates then appeared alongside Julian McPherson, KPMG's former national managing partner of audit and assurance.
Mr Yates said he had reflected on the way that KPMG's anonymous whistleblower had been treated and on the allegations that KPMG had allegedly misused Lendlease's confidential client information.
He said he wished that some things had been done differently.
"I’ve reflected extensively," Mr Yates said.
"In my mind, across that passage of time, I felt at every point of time my team were conducting ourselves in the right way … in the appropriate manner."
He said he had wanted to promote a "speak up" culture at KPMG Australia.
"In this case we didn’t get it right. We didn’t make them [the whistleblower] feel comfortable, as I've reflected on the things that led to me resigning," Mr Yates said.
He left KPMG Australia last month, admitting "a lot of those things haven't worked as I thought they would … we didn't get it right".
Senator Scarr said the whistleblower had suffered "horrendous perso…
Read the full article at ABC News (Australia) →📄Source document: Department of Finance Spokesperson Statement→7 reports
The Sydney Morning HeraldParty-alignedCenter2 days agoFormer New South Wales Premier Mike Baird, who stepped down as an independent director on KPMG’s board last year, has stated that the accounting firm’s response to a whistleblower scandal was lacking in urgency. Baird made these comments during an inquiry into the incident.
Bias read (Center): The article reports on a statement made by Mike Baird regarding KPMG's handling of a whistleblower issue. There is no evident framing bias, loaded language, or one-sided sourcing. The content remains neutral and factual, focusing on the reported statement without taking a stance.
The AgeParty-alignedCenter2 days agoFormer NSW premier Mike Baird, who stepped down as an independent director on KPMG’s board last year, testified before an inquiry into a whistleblower scandal at the firm. Baird criticized KPMG’s response to the whistleblower allegations, stating it lacked urgency.
Bias read (Center): The article reports on a public statement by Mike Baird regarding KPMG's handling of a whistleblower issue without taking a stance or using biased language. It presents facts without evident slant.
ABC News (Australia)State / PublicCenter2 days agoFederal senators in Australia are investigating the accounting and auditing industry following ongoing revelations about KPMG's whistleblower scandal. During a parliamentary hearing, former KPMG Australia audit head Julian McPherson apologized to an unnamed whistleblower who alleged they were pressured to leave the firm. The committee learned that the whistleblower's computer was covertly searched due to concerns about leaking confidential information. Senators questioned senior executives from Chartered Accountants Australia New Zealand (CA ANZ) about the state of the industry, referencing a
Bias read (Center): The article presents facts without overtly favoring any side, focusing on the parliamentary inquiry into KPMG's practices and the broader scrutiny of the accounting industry. It includes perspectives from both the whistleblowers and the industry representatives without apparent bias.
The AgeParty-alignedLeft2 days ago Watch live: KPMG clients and associates face Senate questioningThe article provides a live report on a parliamentary joint committee public hearing investigating the KPMG whistleblower scandal. Key attendees include Lendlease's top executives, KPMG's former CEO and senior partner, and other industry figures. Senator Deborah O'Neill, a Labor Party member, is presiding over the hearing and has emphasized the importance of transparency and public interest.
Bias read (Left): The article frames the event through the perspective of Senator Deborah O’Neill, a Labor Party member, who emphasizes the significance of the matter for the 'public good' and highlights potential governance issues within law firms. The focus on accountability and public interest aligns with left-lib
Official sources cited
- government Senator Deborah O’Neill’s statement
- organisation KPMG Australia’s former CEO Andrew Yates
- organisation KPMG Australia’s senior partner Julian McPherson
The Sydney Morning HeraldParty-alignedLeft2 days ago Watch live: KPMG clients and associates face Senate questioningThe article provides a live report on a parliamentary inquiry into the KPMG whistleblower scandal. Key attendees include Lendlease executives, KPMG officials, and other industry figures. Senator Deborah O'Neill, a Labor Party member, is presiding over the hearing and has emphasized the importance of transparency.
Bias read (Left): The article highlights the involvement of a Labor senator who initiated the inquiry and emphasizes the significance of the matter for the 'public good.' The framing suggests an emphasis on accountability and transparency, aligning with progressive values. There is no explicit bias in the summary of
Official sources cited
- government Senator Deborah O'Neill's statement
The AgeParty-alignedCenter6 days ago KPMG hit with de facto ban on new government contractsKPMG has been temporarily barred from bidding for new federal government contracts in Australia while the Department of Finance conducts a review of the firm's governance, culture, ethics, and integrity frameworks. This decision follows a whistleblower scandal involving alleged misuse of sensitive information by KPMG executives for financial gain. The restriction applies until 30 September 2026 under the Commonwealth Procurement Rules (CPR). State governments are also reassessing their relationships with KPMG.
Bias read (Center): The article presents factual information without overtly biased language or selective sourcing. It reports on a contractual decision by the Department of Finance based on a whistleblower scandal, providing quotes from an official source and outlining the scope of the review. There is no evident slav
Official sources cited
- government Department of Finance Spokesperson Statement
The Sydney Morning HeraldParty-alignedCenter6 days ago KPMG hit with de facto ban on new government contractsKPMG has been temporarily barred from bidding for new federal government contracts in Australia while the Department of Finance conducts a review of the firm's governance, culture, ethics, and integrity. This decision follows a whistleblower scandal involving alleged misuse of sensitive information by KPMG executives for financial gain. The restriction applies until 30 September 2026, and the Department of Finance has requested KPMG not to pursue new Commonwealth contracts during this period. State governments are also reconsidering their ties with KPMG.
Bias read (Center): The article presents factual information without overtly biased language or selective sourcing. It reports on a contractual decision by the Department of Finance based on internal investigations and does not take a stance on the validity of the whistleblower claims or the broader implications for Kp
Official sources cited
- government Department of Finance Spokesperson Statement
Australia