KPMG has accepted the resignations of its current chief executive Andrew Yates and another senior partner Julian McPherson after confirming another instance where confidential client data was allegedly used to win new business with other clients.
In a statement on Friday morning, KPMG said its treatment of the whistleblower complaint that triggered the scandal, and subsequent investigation into the allegations โfell short of the firmโs expectations, those of the whistleblower and the broader community.โ
The group also confirmed its initial internal investigation, that did not substantiate the allegations raised by the whistleblower, was not conducted with the โnecessary rigour required.โ
KPMG chairman Martin Sheppard said he had accepted the resignations of Yates and McPherson with immediate effect as they had ultimate responsibility for managing the whistleblower complaint and the internal investigations.
โWe apologise unreservedly to the whistleblower. We commit to learning from this process to ensure we create an environment where it is safe and easy to surface concerns that will be acted upon. KPMG apologises to the clients whose information was not handled with the care and respect they expect from us,โ Sheppard said.
The use of confidential information echoes the PwC tax leaks scandal where the consulting giant after partners at the firm allegedly used confidential government tax plans to help multinational companies avoid the new scheme.
PwC is currently banned from government work and the scandal led to strict procurement rules governing acceptable behaviour by consultants.
This week during senate estimates Department of Finance officials said they had told KPMG Australia it could be banned from bidding for contracts after the firm repeatedly failed to notify officials about wide-ranging allegations of client data misuse.
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.
