Key facts
- KPMG Australia COO Eileen Hoggett stepped down from her executive role.
- Hoggett will continue as an audit partner during investigations.
- The firm's CEO and head of audit previously resigned over the scandal.
- Allegations involve misuse of confidential client information to win audit contracts.
- The Australian Securities and Investments Commission is investigating three KPMG auditors.
- A parliamentary hearing is scheduled for June 19.
KPMG Australia's Chief Operating Officer, Eileen Hoggett, has stepped down from her executive position as the accounting firm faces mounting scrutiny over allegations of misusing confidential client information to secure audit contracts. Hoggett will continue as an audit partner while investigations proceed. Her departure follows the recent resignations of the firm's CEO and head of audit, who left due to the mishandling of an internal probe into whistleblower claims. The whistleblower alleged that confidential board papers from real estate company Lendlease were used to bid for audit tenders of Westpac and Dexus. Senator Deborah O'Neill brought these allegations to parliament in March. The Australian Securities and Investments Commission has initiated a preliminary investigation into three KPMG registered company auditors. KPMG's interim CEO, Stan Stavros, acknowledged that the firm should have handled the whistleblower's claims differently and anticipates continued public scrutiny. A parliamentary hearing on the matter is scheduled for June 19. The New South Wales and Victorian governments are also seeking assurances from KPMG regarding its management of confidential information and its current state contracts.