Review finds errors by KPMG Australia in whistleblower case — TimesLIVE

A government review in Australia found that KPMG Australia improperly handled a whistleblower complaint about the possible misuse of confidential information by company employees while participating in tenders for new audit contracts. At the same time, the review did not recommend permanently barring the firm from working with the federal government, TimesLIVE reports.

Pause on new government contracts

Australia’s Department of Finance, which commissioned the review from former public servant Ian Watt, said that KPMG had agreed not to bid for new federal contracts until February next year. This extends a pause in effect since June while the company implements additional governance changes.

The report stated that KPMG should not be considered permanently unsuitable for work with the Australian Commonwealth government. At the same time, trust in the company should not be restored solely on the basis of its assurances and early positive signs of reform. The government was advised not to allow the firm into new tenders until both the implementation of changes and their effect on employee behaviour have been independently confirmed.

More current news is available on the UA.News Telegram channel Telegram.

Problems with culture and governance

According to the review’s findings, the company largely treated the whistleblower’s report as an employment dispute and focused more on legal implications and risks for the organisation than on verifying the credibility of the claims themselves. The report linked this to declining trust in KPMG among the whistleblower, clients and the public.

The review also indicated that before 2020, KPMG had identified problems including excessive prioritisation of financial results, inconsistent ethical leadership, reluctance to challenge senior executives, obstacles to reporting misconduct and shortcomings in ethical decision-making. At the same time, there was little evidence that these problems had been properly addressed.

In the 2026 financial year, federal contracts brought KPMG Australia A$207.1 million, or 9.5% of its revenue. After the scandal became public in March, the company lost major corporate clients and replaced a number of key executives, including its chief executive, chair and head of audit.