Australia’s corporate regulator, the Australian Securities and Investments Commission (ASIC), has launched a formal investigation into three KPMG Australia partners. The probe follows whistleblower allegations that the accounting firm misused confidential client data to secure lucrative audit contracts. This development sees several blue-chip clients and government agencies re-examining their association with the Big Four firm. ASIC began a preliminary inquiry into KPMG in April, escalating to a formal investigation after the resignations of the firm’s CEO and audit chief last week. ASIC Chair Sarah Court confirmed three registered company auditors are under scope, noting the inquiry remains dynamic.
Allegations, brought to parliament by Labor Senator Deborah O’Neill, contend that confidential board papers from Lendlease, a prominent real estate company, were used to bolster bids for audit tenders for Westpac, a major Australian bank, and Dexus, a leading property firm. ASIC identified Paul Rogers and Eileen Hoggett as two auditors under investigation, both named by the whistleblower. Ms Hoggett recently stepped down as Chief Operating Officer but remains an audit partner. KPMG declined comment, having engaged law firm Allens for an external inquiry after an internal one failed to substantiate misconduct. ASIC Chair Court expressed “deep concerns” but reiterated the regulator’s limitation to action against individual auditors, not the firm.
The Australian Department of Finance is taking the allegations “extremely seriously,” reserving the right to suspend KPMG or preclude the firm from bidding for federal government work. Client reactions are emerging: Dexus announced Ms Hoggett would not sign off its 2026 accounts. REST, a A$105 billion pension fund using KPMG for internal audit and tax services, is seeking further information. Michele Bullock, Governor of the Reserve Bank of Australia, the nation’s central bank, indicated KPMG would not be reappointed for its whistleblower service. These developments echo responses to rival PwC Australia’s 2023 scandal, prompting similar client re-evaluations.
