[SYDNEY] KPMG Australia said its chief operating officer stepped down on Wednesday (Jun 3), as the scandal grew over a whistleblower’s allegations that the accounting firm misused client information to win lucrative audit contracts.
Eileen Hoggett, one of the people directly named by the whistleblower, will remain as an audit partner after relinquishing the executive role while investigations are pending, according to an internal email from KPMG Australia interim CEO Stan Stavros that the firm shared with Reuters.
Hoggett’s withdrawal from the COO role she took on in 2023 comes days after the resignations of the firm’s CEO and head of audit over the mishandling of an internal investigation into the allegations.
KPMG had previously said the investigation failed to substantiate the whistleblower’s claims, which were also shared with a senator from Australia’s ruling Labor party.
Hoggett did not immediately respond to a request for comment via LinkedIn.
In March, Senator Deborah O’Neill told parliament the whistleblower’s allegations included that confidential board papers from real estate company Lendlease were used to support bids for major audit tenders of Westpac and Dexus.
“Documents were taken from Lendlease by the (KPMG) lead partners on the account, Eileen Hoggett and Paul Rogers, and were physically secured in Ms Hoggett’s locker,” O’Neill said.
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