• KPMG acknowledgement about Optus follows allegations about Lendlease information
• Lawmakers question efficacy of partnership structure
• Former CEO says 'we're fallible'

SYDNEY, June 19 (Reuters) - KPMG Australia staff shared sensitive information about telecom firm Optus with another internal team bidding for an audit contract for its rival Telstra (TLS.AX) in a breach of ethics, the firm's chairman told a parliamentary hearing on Friday.

The admission confirms whistleblower allegations that KPMG earlier said were unsubstantiated in previous internal and external investigations.

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In the second major scandal to hit a Big Four accounting firm in Australia since 2023, KPMG has been under fire after the whistleblower alleged it misused confidential board papers from real estate company Lendlease (LLC.AX) to support bids for major audit tenders for Westpac (WBC.AX), a large bank, and Dexus (DXS.AX), a property firm.

Lendlease-related allegations have dominated headlines thus far and the acknowledgement of the improper handling of the Optus information will only pile more pressure on KPMG.

"The Optus, Telstra matter emerged very recently," Chairman Martin Sheppard told lawmakers, adding that unredacted information about Singapore Telecommunications (STEL.SI)-owned Optus moved "through an ethical divider" when it shouldn't have.

Sheppard was one of several current and former...

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