Federal government's suspension on new contract engagements with KPMG extended until February 2027
A government-commissioned review of KPMG Australia has found that the Big Four firm failed to appropriately respond to whistleblower concerns, reflecting broader weaknesses in the its culture, governance and accountability arrangements.
The independent review, carried out by Dr Ian Watt AC, was commissioned by the Department of Finance amid a scandal involving KPMG where it allegedly misused client information and retaliated against a protected whistleblower following formal disclosure, among other allegations.
"KPMG mishandled the whistleblower matter," the review read. "Its response was misguided, fragmented, prolonged and, at critical points, lacked clear ownership."
It pointed out that KPMG dealt with the whistleblower's disclosure as an "employment matter," even though it included alleged broader unethical conduct stemming from commercial pressure, fear of retaliation and a weak speak-up culture.
"The firm focused more heavily on the legal status of the disclosure, the allegations and the risks to the organisation than on the practical protection and support that should be provided to the person raising the concerns, and too little on the possibility that the whistleblower's broader allegations might be correct," the report added.
It concluded that KPMG's whistleblower framework was not fit for purpose in its application.
"The firm had policies and reporting channels,...
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