KPMG Australia CEO Andrew Yates Quits Amid Whistleblower Scandal

The Leadership Shake-Up at KPMG Australia

KPMG's Australian chief, Andrew Yates, will step down immediately, after taking responsibility for the consultancy firm's failure to properly respond to whistleblower allegations around the misuse of client information.

The firm's chief executive made the shock announcement on Friday morning, saying: "It is clear that in this case we have let ourselves down and I take accountability."

Yates was appointed to the top role at KPMG Australia in 2021 and will be replaced on an interim basis by partner Stan Stavros.

The Whistleblower Scandal

Senator Deborah O'Neill, who chairs the powerful joint committee on corporations and financial services, first revealed the whistleblower's allegations under parliamentary privilege in a speech to the Senate on 24 March.

It was alleged that KPMG improperly used confidential information from its client Lendlease to win audit work with Westpac and Dexus, and that the accounting firm had repeatedly failed to act on the whistleblower's complaint.

The Regulatory Response

The Australian Securities and Investments Commission (Asic) on Friday morning revealed it was conducting "a preliminary investigation into the allegations about the conduct of a number of the registered company auditors at the firm KPMG".

The Asic commissioner Kate O'Rourke told the joint parliamentary committee, which has oversight of the corporate watchdog, that the investigation related to three individuals "rather than the firm itself".

The Future of KPMG Australia

KPMG said it was continuing to investigate "a matter relating to client documents being inappropriately shared internally". KPMG said it recognised its internal reviews had fallen short.

"KPMG Australia confirms its treatment of a whistleblower and investigation into their allegations fell short of the firm's expectations, those of the whistleblower and the broader community," it said in a statement.