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.
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. McPherson denied threatening the whistleblower, saying: “I don’t recall that it was a definitive decision that he would be terminated.”
Both men said they had taken the allegations seriously and had believed they were responding appropriately.
KPMG told the inquiry it never offered to pay for the whistleblower to get legal advice on his rights. Without legal protection, the whistleblower refused to provide identifying detail for his claims.
KPMG management said they repeatedly asked for more information on the allegations, even searching his computer to find evidence in November 2024. Yates said he did not then tell KPMG’s executive, instead awaiting an internal investigation, which failed to find evidence of wrongdoing.
In April 2025, independent board members were told there were specific allegations relating to specific companies. In May 2025, Yates told Lendlease about a leak allegation but said investigations had found no evidence.
Yates said he did not tell Optus, nor did he recall alerting Dexus or Westpac. KPMG only substantiated any of the allegations and alerted clients after Senator Deborah O’Neill raised the whistleblower’s allegations in parliament in March 2026.
Yates and McPherson have since resigned, acknowledging they mishandled the whistleblower’s complaints.
KPMG brought in two top international law firms to investigate the whistleblower: the UK-headquartered Ashurst and the Sydney-based Allens, which told the inquiry it had a “long relationship” with KPMG.
Neither firm ever interviewed the whistleblower, the inquiry heard.
Ashurst initially looked into the whistleblower’s employment issues in February 2025, it told the inquiry. In June 2025, it gave KPMG advice on its internal investigation into the allegations.
In legal advice provided to KPMG in December 2025, Allens said it had found no evidence of the allegations.
In May, KPMG said the investigations had not been rigorous enough. It had asked Allens to investigate again in March after the claims became public.
Both firms have stood by the quality of their work and neither is accused of wrongdoing.
KPMG International was the whistleblower’s next port of call.
KPMG’s global general counsel, Anne Collins, told the inquiry the whistleblower contacted the international team. The whistleblower told the inquiry Collins personally acknowledged his concerns by email in June 2025, then forwarded his email on to Freshfields, a London-based law firm.
The whistleblower said Freshfields later told him KPMG International was not aware of his concerns and had no authority to investigate the Australian firm’s conduct.
KPMG International, which includes Collins, denied wrongdoing and told the inquiry it took “reasonable and appropriate” steps. It said the whistleblower initially did not provide details of his allegations then, when he did, the global firm deferred to the Australian investigations on the belief the whistleblower had been invited to assist.
“KPMG Australia has acknowledged that its conduct has fallen short of the standards we hold ourselves to – and that the community at large expects – and we welcome the accountability that the Australian firm has taken,” the international firm said.
Gary Wingrove, KPMG International’s incoming chief executive and the former Australian CEO, has nonetheless apologised for the firm’s handling, saying: “I’m sorry, personally.”
Freshfields declined to comment, citing client confidentiality.
The Australian government has not ensured KPMG and other big partnerships are properly covered by company regulations, the corporate regulator has warned.
The Australian Securities and Investments Commission only began investigating the alleged KPMG failings in April, after they were made public, Sarah Court, Asic’s chair, told Senate estimates on 5 June. Asic lacks key powers to investigate and regulate partnerships directly and can only investigate registered company auditors, Court said.
Court told the inquiry that Asic should be given powers to investigate big partnerships – as it can for companies – and called for bigger penalties over breaches of the law.
She also called for more whistleblower protections to cover partnerships, as did KPMG Australia’s outgoing chair, Martin Sheppard.
An inquiry prompted by the PricewaterhouseCoopers tax leaks scandal recommended sweeping reforms in 2024. The government did not formally respond until February 2026 and did not adopt its recommendations.
In June, the government announced it would consider reform of partnership and whistleblower law. Consultation will continue until late July.
KPMG has been slow to give the inquiry and regulators full access to its investigations into the allegations.
On 19 June, Sheppard, KPMG’s chair at the time, told the inquiry the firm was claiming legal professional privilege and withholding the documents because they involved claims relating to people who may face criminal investigation. That evening, he relented.
KPMG then announced Sheppard would resign on 23 June. The interim CEO, Stan Stavros, said the change was necessary.
“We are determined to confront what went wrong, act transparently and ensure these failings are not repeated,” Stavros said.
But KPMG only shared with the inquiry committee some, not all, of the documents it requested, the committee said on Tuesday. Its chair, Senator O’Neill, said KPMG should also share the documents to Asic and the Tax Practitioners Board for their investigations.
KPMG did not comment when asked if it had shared the investigations with regulators or given the committee full access. Asic and the TPB did not comment on Friday when asked if KPMG had shared the documents.
Read the full story at The Guardian ↗ · The Guardian ↗
A parliamentary inquiry has found that KPMG partners leaked confidential information from Lendlease and Optus to colleagues seeking audit contracts at other firms. A whistleblower emailed concerns to KPMG's then-audit head in May 2024, alleging revenue-driven misconduct. KPMG management treated the matter as an HR issue, did not offer the whistleblower legal protection, and declined to alert affected clients or regulators for nearly two years. Two international law firms hired to investigate did not interview the whistleblower, and KPMG International deferred to the Australian investigations. Only when Senator Deborah O'Neill raised the allegations in Parliament in March 2026 did KPMG substantiate claims and notify clients. The firm's former CEO and audit head have since resigned. KPMG Australia's chair resigned on 23 June. The corporate regulator ASIC has flagged that it lacks powers to directly investigate large partnerships and began its own investigation only after the allegations became public. The government is consulting on reforms to partnership regulation and whistleblower protections, following recommendations made after the PwC tax leaks scandal in 2024.
Read the full story at The Guardian ↗ · The Guardian ↗
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.
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. McPherson denied threatening the whistleblower, saying: “I don’t recall that it was a definitive decision that he would be terminated.”
Both men said they had taken the allegations seriously and had believed they were responding appropriately.
KPMG told the inquiry it never offered to pay for the whistleblower to get legal advice on his rights. Without legal protection, the whistleblower refused to provide identifying detail for his claims.
KPMG management said they repeatedly asked for more information on the allegations, even searching his computer to find evidence in November 2024. Yates said he did not then tell KPMG’s executive, instead awaiting an internal investigation, which failed to find evidence of wrongdoing.
In April 2025, independent board members were told there were specific allegations relating to specific companies. In May 2025, Yates told Lendlease about a leak allegation but said investigations had found no evidence.
Yates said he did not tell Optus, nor did he recall alerting Dexus or Westpac. KPMG only substantiated any of the allegations and alerted clients after Senator Deborah O’Neill raised the whistleblower’s allegations in parliament in March 2026.
Yates and McPherson have since resigned, acknowledging they mishandled the whistleblower’s complaints.
KPMG brought in two top international law firms to investigate the whistleblower: the UK-headquartered Ashurst and the Sydney-based Allens, which told the inquiry it had a “long relationship” with KPMG.
Neither firm ever interviewed the whistleblower, the inquiry heard.
Ashurst initially looked into the whistleblower’s employment issues in February 2025, it told the inquiry. In June 2025, it gave KPMG advice on its internal investigation into the allegations.
In legal advice provided to KPMG in December 2025, Allens said it had found no evidence of the allegations.
In May, KPMG said the investigations had not been rigorous enough. It had asked Allens to investigate again in March after the claims became public.
Both firms have stood by the quality of their work and neither is accused of wrongdoing.
KPMG International was the whistleblower’s next port of call.
KPMG’s global general counsel, Anne Collins, told the inquiry the whistleblower contacted the international team. The whistleblower told the inquiry Collins personally acknowledged his concerns by email in June 2025, then forwarded his email on to Freshfields, a London-based law firm.
The whistleblower said Freshfields later told him KPMG International was not aware of his concerns and had no authority to investigate the Australian firm’s conduct.
KPMG International, which includes Collins, denied wrongdoing and told the inquiry it took “reasonable and appropriate” steps. It said the whistleblower initially did not provide details of his allegations then, when he did, the global firm deferred to the Australian investigations on the belief the whistleblower had been invited to assist.
“KPMG Australia has acknowledged that its conduct has fallen short of the standards we hold ourselves to – and that the community at large expects – and we welcome the accountability that the Australian firm has taken,” the international firm said.
Gary Wingrove, KPMG International’s incoming chief executive and the former Australian CEO, has nonetheless apologised for the firm’s handling, saying: “I’m sorry, personally.”
Freshfields declined to comment, citing client confidentiality.
The Australian government has not ensured KPMG and other big partnerships are properly covered by company regulations, the corporate regulator has warned.
The Australian Securities and Investments Commission only began investigating the alleged KPMG failings in April, after they were made public, Sarah Court, Asic’s chair, told Senate estimates on 5 June. Asic lacks key powers to investigate and regulate partnerships directly and can only investigate registered company auditors, Court said.
Court told the inquiry that Asic should be given powers to investigate big partnerships – as it can for companies – and called for bigger penalties over breaches of the law.
She also called for more whistleblower protections to cover partnerships, as did KPMG Australia’s outgoing chair, Martin Sheppard.
An inquiry prompted by the PricewaterhouseCoopers tax leaks scandal recommended sweeping reforms in 2024. The government did not formally respond until February 2026 and did not adopt its recommendations.
In June, the government announced it would consider reform of partnership and whistleblower law. Consultation will continue until late July.
KPMG has been slow to give the inquiry and regulators full access to its investigations into the allegations.
On 19 June, Sheppard, KPMG’s chair at the time, told the inquiry the firm was claiming legal professional privilege and withholding the documents because they involved claims relating to people who may face criminal investigation. That evening, he relented.
KPMG then announced Sheppard would resign on 23 June. The interim CEO, Stan Stavros, said the change was necessary.
“We are determined to confront what went wrong, act transparently and ensure these failings are not repeated,” Stavros said.
But KPMG only shared with the inquiry committee some, not all, of the documents it requested, the committee said on Tuesday. Its chair, Senator O’Neill, said KPMG should also share the documents to Asic and the Tax Practitioners Board for their investigations.
KPMG did not comment when asked if it had shared the investigations with regulators or given the committee full access. Asic and the TPB did not comment on Friday when asked if KPMG had shared the documents.
Read the full story at The Guardian ↗ · The Guardian ↗
KPMG partners leaked confidential Lendlease and Optus information to colleagues applying for audit contracts at Westpac, Dexus and Telstra, with at least three partners involved A whistleblower emailed allegations to KPMG's audit head on 30 May 2024, citing revenue growth prioritised 'at all costs' and other workplace concerns KPMG denied the whistleblower a pay rise, withdrew his client work, and threatened termination after he raised concerns KPMG management did not offer the whistleblower legal advice on his rights Two international law firms (Ashurst and Allens) investigated the allegations but never interviewed the whistleblower KPMG did not alert affected clients Lendlease, Optus, Dexus or Westpac until after the allegations were raised in Parliament in March 2026 KPMG's former CEO Andrew Yates initially focused on the whistleblower as an HR issue rather than escalating allegations to executive management ASIC only began investigating in April 2026, after the allegations became public ASIC lacks direct regulatory powers to investigate large partnerships and can only investigate registered company auditors The government did not formally respond to a 2024 inquiry recommending partnership and whistleblower reforms until February 2026, and did not adopt the recommendations KPMG initially claimed legal professional privilege and withheld investigation documents before releasing them after the chair's intervention on 19 June KPMG Australia's chair Martin Sheppard resigned on 23 June; the former CEO and audit head have also resigned KPMG's conduct represented a failure in applying the firm's stated commitment to integrity and whistleblower protection Multiple institutions—management, law firms, and regulators—missed or delayed responding to the whistleblower's concerns
Read the full story at The Guardian ↗ · The Guardian ↗
- KPMG partners leaked confidential client information to colleagues bidding for audit contracts; a whistleblower raised concerns in May 2024 but faced retaliation including denied pay rise and threatened termination
- KPMG management, three law firms (Ashurst, Allens, Freshfields), and regulators failed to act: the whistleblower was not interviewed, clients were not alerted until March 2026 when claims reached Parliament, and investigations were incomplete
- KPMG's CEO and audit head have resigned; the firm acknowledged conduct fell short of standards; regulators lack direct powers to investigate partnerships and recommend legislative reform