KPMG Australia has acknowledged that its treatment of a whistleblower and their investigation into the whistleblower’s allegations “fell short of the firm’s expectations" and that of the whistleblower and the wider community.
The firm conducted an initial internal investigation which did not verify the allegations reported by the whistleblower. The firm admits that the internal investigation “was in hindsight not conducted with the necessary rigour required.” This triggered extended communications and allegations from the whistleblower which led to the appointment of an external law firm to examine the internal investigation. The outcome of the external legal review supported the internal investigation which exacerbated the whistleblower’s concerns with the process and prompted them to raise it with independent members of the KPMG Australia Board and other stakeholders.
A Board Sub-Committee, led by the Deputy Chair and three independent directors, appointed Big Law firm, Allens to carry out an additional external legal investigation. The outcome of that investigation is still pending.
The Board acknowledged a number of shortcomings in relation to the “management of the whistleblower and their concerns, the rigour of the investigations and action by leadership regarding the allegations raised.”
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