KPMG Australia's chief executive, Andrew Yates, has resigned with immediate effect, taking responsibility for the firm's mishandling of whistleblower allegations concerning the misuse of client information. Yates, who became CEO in 2021, said: 'It is clear that in this case we have let ourselves down and I take accountability.'
The whistleblower, whose allegations were revealed in parliament by Senator Deborah O'Neill in March, claimed KPMG improperly used confidential data from client Lendlease to win audit work with Westpac and Dexus. The firm admitted its initial internal investigation lacked rigour and failed to substantiate the claims.
KPMG chair Martin Sheppard apologised unreservedly to the whistleblower. An external investigation by law firm Allens will continue with expanded scope. Meanwhile, the Australian Securities and Investments Commission (ASIC) has launched a preliminary investigation into three unnamed KPMG auditors.
Interim CEO Stan Stavros will take over, while audit division head Julian McPherson will also step down and leave the firm after a transition period. The scandal follows similar issues at PwC, which was banned from government contracts over misuse of confidential tax briefings.
