Lendlease is poised to end its 68-year audit relationship with embattled consulting group KPMG after learning that one of the firm’s auditors illicitly accessed its boardroom documents.
Lendlease on Monday revealed its audit contract with KPMG was under review, and sources said the company was beginning the significant process required to change auditors.
“It is not appropriate to make a change in auditors this close to financial year end. We will be reviewing our audit services following the completion of FY26 reporting,” a Lendlease spokesperson said on Monday.
In March, Lendlease chief executive Tony Lombardo told KPMG the action of its employees were “not acceptable” when the firm admitted boardroom documents were accessed.
KPMG Australia boss Andrew Yates and senior partner Julian McPherson abruptly resigned Friday after the company confirmed confidential client data had been shared and potentially used to win new business with other clients, following explosive claims from a whistleblower.
The anonymous whistleblower first made a complaint in 2024 with dozens of allegations, including that KPMG partners illicitly accessed board papers from their client, Lendlease, which were used to win lucrative audit work at Westpac and Dexus. The whistleblower also alleges confidential information was used to win Macquarie’s lucrative audit contract, which is worth about $75 million a year.
A letter from Lendlease chief executive Tony Lombardo in late April to a parliamentary joint committee chaired by O’Neill confirmed the construction giant had been the victim of the earlier data breach, which KPMG described as a “related conduct” matter.
Lendlease said KPMG first made it aware of whistleblower allegations in May last year – that sensitive board papers had been accessed by its audit partners to win work with other clients – but KPMG said it was satisfied there was “no issue”.
After O’Neill aired the whistleblower allegations in March, KPMG told Lendlease that one of its audit partners had actually accessed the board papers, but the consulting group deemed the documents to be of “low sensitivity” that gave it “zero competitive advantage”.
“Lendlease has advised KPMG that the actions of its employees are not acceptable and is in discussions with KPMG as to the action to be taken,” Lombardo says in the letter to a parliamentary committee.
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Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.
