KPMG faces big setback in Australia amid allegations of mishandling confidential data
KPMG has agreed to halt bidding for government work and faces further scrutiny after evidence showed confidential client papers were kept in a Sydney locker.
- KPMG Australia is barred from Victorian and federal government contract bids until at least September 30, requiring the firm to withdraw from ongoing tender discussions during the review process.
- Whistleblower allegations raised in parliament earlier this year claimed KPMG staff shared confidential Lendlease board documents to secure audit tenders, which the firm previously denied but has since admitted.
- On Friday, new Chief Executive Officer John Sams sacked former chief operating officer Eileen Hoggett for lying about storing sensitive Lendlease board documents in her locker, calling the conduct "totally unacceptable."
- Facing potential losses of major contracts like the $70 million Lendlease audit, KPMG is preparing to cut around 10 per cent of its workforce and reduce partner pay by up to 20%.
- Corporate watchdog ASIC and the Tax Practitioner's Board are investigating the firm, while the federal government considers splitting accounting firms' auditing and consulting arms to address professional conduct concerns.
12 Articles
12 Articles
KPMG confirms ex-COO stashed confidential Lendlease docs in locker
Save (0) Please login to bookmarkClose Username or Email Address Password Remember Me KPMG has confirmed that former chief operating officer Eileen Hoggett kept confidential Lendlease documents in a locker at the firm’s Sydney office, after fresh inquiries substantiated whistleblower allegations. Subscribe to Lawyerly to access this article.Already a subscriber? Username or Email Address Password Remember Me …
Sydney Morning Herald
KPMG says ‘no decisions have been made’ on staff purge amid reports of 1000 cuts
The Australian Financial Review reported that the firm, under the leadership of new chief executive John Sams, is preparing to shed around 10 per cent of its workforce and dozens of its 600 partners. The embattled consulting firm says no decision has been made as of yet.
KPMG to be grilled at parliamentary inquiry on secretly stashing client files
Accounting firm KPMG will be hauled before a federal inquiry to answer further questions about why one of its former employees stored printed copies of confidential Lendlease board documents in her locker and shared them with her colleagues to win audit contracts.
The Economic Times
Times of IndiaKPMG faces big setback in Australia amid allegations of mishandling confidential data
KPMG Australia has stopped bidding for new Victorian government contracts as an investigation into the alleged misuse of confidential client information deepens. The audit and consulting firm is also withdrawing from ongoing tenders, while facing possible job cuts, lower partner pay and wider restrictions on public sector work across Australia.
KPMG barred from competing for government work in Victoria – report
KPMG has been blocked from bidding for new government contracts in Victoria, Australia, until at least October, according to the Australian Financial Review (AFR) report. The ‘Big Four’ company must also withdraw from current tender negotiations, as the company confronts escalating fallout from the misuse of confidential client documents, the report added. The state government has written to KPMG demanding an explanation for the misconduct. The …
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