The most serious whistleblower claim from the KPMG scandal, that senior partners had illicitly accessed sensitive Lendlease board documents and kept them in a work locker, has been confirmed and led to the immediate expulsion of former chief operating officer, Eileen Hoggett.
“I can confirm that the ongoing investigation by external law firm Allens has uncovered new evidence that supports the whistleblower’s allegation that confidential client information was kept in a locker at KPMG’s Sydney office,” a spokesman for KPMG said.
“[KPMG Australia CEO John Sams] has taken immediate action to expel a partner from the firm,” the spokesman said. This masthead understands it was Hoggett who was expelled.
“To say I am angry about this is an understatement. The conduct was totally unacceptable, and it is unacceptable that it has taken so long for us to get to this point,” Sams told partners on Friday afternoon.
KPMG said the investigations into the whistleblower allegations, which have thrown the firm into turmoil in recent months, remain ongoing. KPMG has updated impacted clients and the relevant regulatory and professional bodies.
Hoggett had already resigned over the scandal but had yet to leave the firm. She would have left with a significant retirement benefit – expected to exceed a million dollars – if that had proceeded.
Former KPMG boss Andrew Yates, who resigned over the scandal in May, received a retirement payment of $2.4 million, including $1.7 million in lieu of...
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