Overview
- A public parliamentary hearing on Friday brought former and current KPMG leaders, Lendlease executives and lawyers to Canberra to answer allegations that confidential Lendlease board papers were used to win audit pitches.
- KPMG told the committee it would not hand over key documents because they are subject to legal professional privilege and could prejudice the administration of justice, prompting threats from parliament to compel disclosure.
- The whistleblower accused KPMG of mishandling their complaint and said the firm searched their computer and failed to protect them, testimony that senators described as evidence of serious mistreatment.
- Senior KPMG figures have resigned or been demoted and the federal Department of Finance has barred the firm from bidding for new Commonwealth contracts for three months while reviews proceed, even though KPMG still holds 297 active government contracts worth A$653 million.
- Multiple external and regulator-led probes are active, including an Allens review and a corporate watchdog inquiry, and lawmakers are pushing policy options such as tighter oversight, stronger whistleblower safeguards and separation of audit and consulting services.