KPMG leaked confidential Optus information and surveilled whistleblower’s laptop, inquiry hears

KPMG has admitted to further ethical breaches, including leaking confidential Optus information to colleagues vying for an audit contract with Telstra. Executives at the consulting firm also surveilled a whistleblower's laptop, reportedly dismissing the individual's concerns as "workplace grievances."

The internal leaks first came to light when Senator Deborah O'Neill shared the whistleblower's testimony under parliamentary privilege on March 24. Initially, KPMG stated the allegations were unsubstantiated. However, in the following weeks, the firm determined that partners had leaked confidential information belonging to Lendlease, and another partner made an inappropriate remark suggesting colleagues review Dexus' confidential information.

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Information moving through an ethical divider … shouldn’t have moved through that divider

On Friday, KPMG Chair Martin Sheppard publicly confirmed that staff who audited Optus shared unredacted confidential information with the team pursuing the Telstra audit contract. "Information moving through an ethical divider... shouldn't have moved through that divider," Sheppard stated at a parliamentary joint committee public hearing in Canberra.

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There was evidence to support some of the whistleblower allegations that, had I overseen things differently, we could have found earlier, and it was that day that I realised that I felt I needed to take accountability

KPMG's former chief executive, Andrew Yates, cited the confirmation of the Optus leak as motivation for his May resignation. "There was evidence to support some of the whistleblower allegations that, had I overseen things differently, we could have found earlier, and it was that day that I realised that I felt I needed to take accountability," Yates told the inquiry. He noted his resignation included a $1.7 million payment for his notice period and $2.4 million upon retirement as part of the firm's partnership agreement.

The peak accounting body, Chartered Accountants Australia and New Zealand (CAANZ), announced it is investigating Yates and 11 others in connection with the scandal. CAANZ Chief Executive Ainslie van Onselen expressed disgust at the alleged conduct. Partners Eileen Hoggett and Paul Rogers have stood down from audit work and are under investigation by the Australian Securities and Investments Commission for their alleged roles in leaking Lendlease information.

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disgusted