KPMG Australia’s Chief Operating Officer, Eileen Hoggett, stepped down on Wednesday amidst escalating scandal over allegations that the accounting firm misused confidential client information to secure lucrative audit contracts. Hoggett, directly named by the whistleblower, will remain an audit partner while investigations proceed, according to an internal email from interim CEO Stan Stavros shared by the firm. Her withdrawal from the COO role, which she took in 2023, follows the recent resignations of KPMG’s CEO and head of audit over the alleged mishandling of an earlier internal probe into these claims.
KPMG is a global professional services firm offering audit, tax, and advisory services to a wide range of clients, and one of the ‘Big Four’ accounting organisations. The allegations, which KPMG had previously stated its internal investigation failed to substantiate, include claims that confidential board papers from real estate company Lendlease were used to support bids for major audit tenders for Westpac and Dexus. Senator Deborah O’Neill told parliament in March that documents were allegedly taken from Lendlease by lead partners Eileen Hoggett and Paul Rogers, and physically secured in Ms Hoggett’s locker.
This situation has intensified scrutiny on Australia’s professional services sector, still grappling with revelations in 2023 that PwC shared confidential government information. In response, interim CEO Stan Stavros acknowledged the firm should have handled the whistleblower’s complaints differently, engaging law firm Allens to conduct a new external investigation. The New South Wales government has sought assurances regarding KPMG’s management of confidential information and staff on state contracts, while the Victorian government is also reviewing its agreements. Furthermore, the Australian Securities and Investments Commission has commenced a preliminary investigation into three KPMG registered company auditors, with a parliamentary hearing scheduled for June 19.
