KPMG Australia CEO Andrew Yates has resigned with immediate effect after accepting responsibility for the company’s failure to properly address whistleblower claims about misuse of client information.
In a statement, KPMG said that its chairman, Martin Sheppard, has accepted the resignation. Yates, who was appointed in 2021, will be replaced on an interim basis by partner Stan Stavros.
Yates said: “I have been committed to a speak-up culture in our firm, it is clear that in this case we have let ourselves down and I take accountability.”
Additionally, national managing partner of audit and assurance Julian McPherson will also step down and leave the firm “after an orderly transition of his client responsibilities”.
The moves follow allegations first outlined under parliamentary privilege by Senator Deborah O’Neill on 24 March in the Senate, the Guardian reported.
It was alleged that the accounting company improperly handled the confidential information from client Lendlease to secure audit work with Westpac and Dexus, and failed repeatedly to act on the whistleblower’s concerns.
KPMG has conceded its internal handling fell short.
KPMG Australia said: “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 initial internal investigation, that did not substantiate the allegations raised by the whistleblower, was in hindsight not...
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