KPMG has admitted to a third breach of ethics, this time involving the leak of confidential Optus information and the surveillance of a whistleblower's laptop, a joint parliamentary committee heard on Friday.
Optus Data Leak Confirmed
KPMG's chair, Martin Sheppard, publicly confirmed for the first time that staff who audited Optus shared unredacted confidential information with the team pursuing an audit contract for Telstra, a competitor telco. "Information moving through an ethical divider … shouldn't have moved through that divider," Sheppard said at the hearing in Canberra.
Whistleblower Surveillance
The inquiry also heard that KPMG executives surveilled the whistleblower's laptop and dismissed the individual as having "workplace grievances." Former head of audit Julian McPherson authorized a search of the whistleblower's computer on May 30, 2024, after the whistleblower first raised concerns, citing worries about potential leaks of KPMG information. Further searches were conducted on November 21 and 26, 2024.
CEO Resignation and Payout
Former CEO Andrew Yates said the confirmation of the Optus leak motivated his resignation in May 2025. "There was evidence to support some of the whistleblower allegations that, had I overseen things differently, we could have found earlier," Yates told the inquiry. He received $1.7 million for his resignation notice period and $2.4 million on retirement.
Regulatory Investigations
Chartered Accountants Australia and New Zealand is investigating Yates and 11 others. Its CEO, Ainslie van Onselen, said she was "disgusted" by the alleged conduct. Partners Eileen Hoggett and Paul Rogers told the inquiry they had stood down from audit work and are under investigation by the Australian Securities and Investments Commission over their alleged role in leaking Lendlease information.
Lendlease Fallout
Lendlease CEO Tony Lombardo said KPMG and Yates told him they had investigated and dismissed leak allegations in May 2025, providing only "piecemeal and sporadic" updates since. Lendlease will seek a new auditor and reimbursement from KPMG for associated costs.
Culture of Fear
The whistleblower, who signed a deed of release in 2025 and no longer works for KPMG, warned in an email that the issues were "endemic within the organisation whereby profit and revenue growth is placed above everything else." Yates acknowledged the firm's handling was inadequate: "I don't think we made the whistleblower feel comfortable through the process." Senator Paul Scarr said the whistleblower "suffered a horrendous personal mental and career cost," to which Yates responded he was "deeply distressed" to hear that.
