Scandal: KPMG Australia Accused of Using Client Data to Win Tenders

KPMG Australia has been hit by a scandal, with the giant firm reported for misusing confidential client information to win audit work. Management has announced the replacement of the company’s chairman and two senior partners. They are Chairman Martin Sheppard, and audit partners Paul Rogers and Eileen Hoggett. “The decisions announced today were necessary and immediate,” interim CEO Stan Stavros said in a statement. “We have not met the standards expected of us… and we recognise the impact this has had on the whistleblower, our people, our clients, and the community,” he said. The scandal began when reports alleged KPMG misused confidential board documents from real estate company Lendlease to support a tender bid for a major audit. KPMG has acknowledged it “mishandled” the complaint. The firm has launched a fourth investigation after previous probes failed to find any wrongdoing. In the report, Rogers and Hoggett were directly named by the whistleblower as the lead partners on the Lendlease audit team involved in the breach. Both are now also under investigation. It is understood that Lendlease’s data was not the only information allegedly misused. KPMG Australia is also accused of sharing sensitive information about telecommunications company Optus with another internal team bidding for an audit contract for its competitor, Telstra.