Key facts
- KPMG Australia is considering seeking up to $100 million in loans from its global network.
- The firm is also seeking a waiver on fees for using the KPMG name and resources.
- KPMG Australia has lost major clients, including Macquarie and ANZ, due to a whistleblower scandal.
- The Australian government has continued to award contracts to KPMG despite a pause on new work.
- Hundreds of KPMG Australia staff have lost their jobs.
- KPMG's global general counsel Anne Collins has retired amid the scandal.
KPMG Australia is reportedly contemplating a request for up to $100 million in emergency loans from its global parent, KPMG International, as it navigates the repercussions of a significant whistleblower scandal. The firm is also seeking a waiver on fees for utilizing the KPMG brand and resources, which are valued similarly to the loan amount.
The consultancy has faced a severe client exodus in Australia, losing contracts worth tens of millions of dollars annually with major entities like Macquarie and ANZ. Despite federal and state governments implementing a pause on new contracts following the scandal, the government has continued to award work to KPMG, with the Department of Defence alone accounting for nearly $30 million in contracts since June 13.
KPMG Australia's chief executive, John Sams, who took the helm in July, has also implemented substantial job cuts. The scandal stems from allegations, first publicly disclosed by Senator Deborah O’Neill in March, that senior partners misused confidential information to secure work. The firm's global general counsel, Anne Collins, has retired as part of a broader leadership transition at KPMG's international headquarters.