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Saturday, July 18, 2026

Federal government has contracts worth more than $650m with embattled KPMG - Australian Broadcasting Corporation

It has been revealed the federal government has almost 300 active contracts with scandal-embroiled KPMG, for a total value of $653 million, according to data from the parliamentary library.

KPMG is being investigated by the corporate watchdog ASIC over claims it misused confidential client information and then mistreated an internal whistleblower.

In 2024, a whistleblower raised concerns with the firm's senior leadership that confidential board papers from construction giant Lendlease were used to pitch for and win audit contracts from other firms including Westpac and Dexus.

An internal investigation did not substantiate the claims, with a further investigation by another external legal firm also supporting the original outcome.

However, after the whistleblower raised further complaints with the board, a different external law firm, Allens, was appointed to look into the claims, which is ongoing.

It uncovered secondary instances of inappropriate document sharing.

The scandal claimed the CEO's scalp

The scandal was publicly revealed by Labor senator Deborah O'Neill in March under parliamentary privilege.

In late May, KPMG chief executive Andrew Yates and audit partner Julian McPherson resigned, with KPMG admitting the investigations "fell short of the firm's expectations" and apologising to the whistleblower.

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