KPMG has appointed Michael Ebeid as its new chair, a move that has drawn sharp criticism from a Greens senator due to his past comments dismissing leak allegations as 'completely false' and accusing a senator of acting 'very inappropriate and unfair'. The appointment comes after former chair Martin Sheppard resigned amid a parliamentary inquiry into the firm's ethical failings.
Emails Reveal Ebeid's Past Comments
Emails released by the parliamentary joint committee on corporations and financial services on Thursday show that on 25 March, KPMG's deputy chair Carmel Mortell alerted Ebeid and his colleagues about a speech by committee chair Senator Deborah O'Neill. In his reply, Ebeid wrote, 'I assume Senator O'Neil made no attempt to contact KPMG before speaking … which in itself would be very inappropriate and unfair of her.' He further accused O'Neill of misrepresenting events and stated, 'As we know well, many of the statements she makes are completely false.'
Ebeid's Apology and Acknowledgment
After the emails were published, Ebeid apologised, saying he was not aware of 'the full range of facts' at the time. 'I recognise the gravity of the whistleblower's allegations and the shortcomings in the firm's approach at the time,' Ebeid said. 'From what I now know … I would not have written that email and am sorry for sending it.' KPMG has admitted its own investigations into the whistleblower's allegations were not rigorous enough.
Criticism from Greens Senator
Greens senator Barbara Pocock, a committee member, said Ebeid's appointment 'risks entrenching the very culture and leadership that need to change.' She added, 'This is not the fresh start for KPMG that it attempts to be. Mr Ebeid is a part of the culture and leadership team where things have gone seriously wrong in KPMG.' Pocock also claimed Ebeid was trying to 'exercise inappropriate influence on senators and committee processes.'
Background of the Scandal
After O'Neill's speech on 24 March, KPMG acknowledged that at least three staff had leaked confidential Lendlease and Optus information to colleagues applying for audit contracts at Westpac, Dexus, and Telstra. Sheppard initially refused to share investigation documents with the committee, claiming legal privilege. On 19 June, after a fiery hearing, Sheppard relented and shared some documents, then resigned on 23 June.
Ebeid's Role and Future Plans
Ebeid was one of three independent board members overseeing KPMG's investigation into the whistleblower's allegations. He was the only independent director to defend KPMG's privilege claim, at odds with his two colleagues and predecessor Mike Baird. In KPMG's statement announcing his appointment, Ebeid said he would accelerate the appointment of a new chief executive and suggested more top staff could be replaced. 'The incoming CEO will have a clear mandate to refresh the executive team where required,' he said.
Government Response
The federal government on Wednesday said it would consider splitting up the big four consulting and audit firms and capping partner numbers in response to the scandal, avoiding such sweeping reforms after the PwC tax leaks in 2023.
