Key facts
- Michael Ebeid has been appointed as the new chair of KPMG.
- Ebeid previously described leak allegations against KPMG as "completely false" and a senator's actions as "inappropriate."
- The appointment follows the resignation of former chair Martin Sheppard amid a parliamentary inquiry into ethical failings.
- KPMG admitted its internal investigations into whistleblower allegations were insufficient.
- The firm acknowledged staff had leaked confidential information.
- Ebeid apologized for his earlier comments, stating he would not have made them with full knowledge of the firm's issues.
KPMG has appointed Michael Ebeid as its new chair, a move that has drawn criticism due to his past remarks downplaying leak allegations against the firm and describing a senator's actions as "inappropriate."
Ebeid was appointed on Thursday, succeeding Martin Sheppard, who resigned while facing a parliamentary inquiry into KPMG's ethical conduct. The committee released emails from March in which Ebeid stated that leak allegations were "completely false" and that Senator Deborah O’Neill's public disclosure of the scandal was "very inappropriate and unfair."
Following the resurfacing of these comments, Ebeid apologized, stating he was unaware of the full extent of KPMG's shortcomings at the time and would not have written the email had he known. He acknowledged the firm had made mistakes and expressed commitment to fixing them.
Greens senator Barbara Pocock criticized Ebeid's appointment, arguing it signals a lack of a fresh start for KPMG and risks entrenching the problematic culture. She suggested Ebeid was part of the leadership team where issues have arisen.
KPMG has admitted that its internal investigations into whistleblower allegations of leaks and other failings in its audit division were not sufficiently rigorous. The firm acknowledged that at least three staff members had leaked confidential information to colleagues bidding for lucrative audit contracts. Ebeid had previously defended the firm's claim of legal privilege over investigation documents, a stance at odds with other board members and his predecessor, Mike Baird.
The parliamentary committee stated it published the emails to highlight Ebeid's role in addressing KPMG Australia's integrity issues and rebuilding trust. The committee also refuted Ebeid's suggestion in the emails that he knew Senator O'Neill, confirming no committee member knew him.
Ebeid indicated that his priorities as chair would include accelerating the appointment of a new chief executive and potentially replacing more top executives. The federal government has stated it is considering significant reforms, including potentially splitting up the big four consulting firms and capping partner numbers, in response to the scandal.