The chief executive officer of KPMG Australia, Andrew Yates, has resigned from his position effective immediately, taking responsibility for the firm's failure to adequately respond to whistleblower allegations concerning the misuse of client information.
CEO Steps Down Amid Scandal
Yates, who was appointed to the top role in 2021, made the announcement on Friday morning, stating: "It is clear that in this case we have let ourselves down and I take accountability." He will be replaced on an interim basis by partner Stan Stavros.
Additionally, Julian McPherson, head of KPMG's audit and assurance division, will step down from his role and leave the company after an orderly transition of his client responsibilities.
Whistleblower Allegations
Senator Deborah O'Neill, chair of the joint committee on corporations and financial services, first revealed the whistleblower's allegations under parliamentary privilege on March 24. The allegations claimed that KPMG improperly used confidential information from its client Lendlease to win audit work with Westpac and Dexus, and that the firm repeatedly failed to act on the whistleblower's complaint.
On Friday, KPMG's chair, Martin Sheppard, said: "We apologise unreservedly to the whistleblower."
Internal Failures Acknowledged
KPMG stated that it recognizes its internal reviews fell 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," the firm said in a statement. "The initial internal investigation, that did not substantiate the allegations raised by the whistleblower, was in hindsight not conducted with the necessary rigour required."
An external investigation by law firm Allens will continue with new evidence and an expanded scope, as KPMG continues to challenge the conclusions reached in prior investigations.
Regulatory Scrutiny
The Australian Securities and Investments Commission (ASIC) revealed on Friday that it is conducting a preliminary investigation into the allegations concerning three registered company auditors at KPMG. ASIC commissioner Kate O'Rourke told the joint parliamentary committee that the investigation relates to individuals rather than the firm itself.
During Friday's hearing, Senator O'Neill tabled a letter from Lendlease detailing how the property developer was first made aware of the allegations in May 2025. Following O'Neill's speech, KPMG informed Lendlease that an audit partner had accessed the company's board papers and displayed them to the audit team, but deemed the documents of "low sensitivity" and providing "zero competitive advantage."
ASIC chair Joe Longo described the circumstances as "clearly unacceptable," noting a breach of normal auditor-client relations.
Broader Context
This scandal follows another high-profile case involving PwC, which was banned from government contracts after partners allegedly used privileged access to confidential government briefings to help clients avoid new tax rules for multinational companies.
