Key facts
- ASIC is investigating three KPMG Australia partners for alleged misuse of confidential client data.
- Whistleblower allegations suggest data from Lendlease was used for audit bids involving Westpac and Dexus.
- KPMG's internal investigation did not substantiate the misconduct claims.
- The Reserve Bank of Australia will not renew its whistleblower service contract with KPMG.
- A new external investigation by law firm Allens is planned.
- ASIC Chair Sarah Court expressed deep concerns and noted the investigation is ongoing.
Australia's corporate regulator, ASIC, has launched a formal investigation into three KPMG Australia partners accused of misusing confidential client data to secure audit contracts. Whistleblower allegations suggest that confidential board papers from Lendlease were used to support bids for audit tenders involving Westpac and Dexus. KPMG conducted an internal investigation that did not substantiate these claims, but ASIC has issued compulsory notices and expressed significant concerns. The Reserve Bank of Australia announced it will not renew its A$10,000 annual whistleblower service contract with KPMG, and a separate foreign employee recruitment contract will also be re-tendered. A new external investigation into the matter will be conducted by law firm Allens. ASIC Chair Sarah Court noted that the investigation is ongoing and could potentially include more individuals, but stated that ASIC's powers are limited to individual auditors due to KPMG's partnership structure. The Department of Finance is considering suspending KPMG from its panel of pre-approved advisory firms. Dexus will not have Eileen Hoggett sign off on its 2026 accounts. REST pension fund is seeking more information from KPMG. The PwC scandal in 2023, which involved sharing confidential government information, has led to increased scrutiny of the Big Four accounting firms.