Andrew Yates has resigned as chief executive of KPMG Australia, taking responsibility for the firm’s mistreatment of a whistleblower who uncovered the misuse of client documents.
Chairman Martin Sheppard also accepted the resignation of Julian McPherson, national managing partner of audit and assurance, who will stand down effectively immediately and will end his tenure at the firm following a transition of his client responsibilities.
Stan Stavros has been appointed interim CEO.
Both resignations were a result of the firm’s treatment of a whistleblower who revealed two incidents of client documents being internally shared inappropriately and one incident of an inappropriate remark about the sharing of client information.
“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,” Yates said in a statement shared on Friday, 29 May.
The whistleblower’s complaints were not substantiated in an internal investigation, which was then supported by an external legal review.
By the time he escalated to the board, a sub-committee – led by the deputy chair and supported by three independent directors – appointed Allens to conduct a further investigation, which is ongoing.
Disciplinary action has been taken over the inappropriate remark.
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