KPMG Australia faces lawmakers over misuse of Lendlease data
Why it matters: The hearing sharpened pressure for rules forcing audit firms to split consulting arms and tighten accountability.
KPMG Australia executives clashed with lawmakers in Canberra on Friday as a parliamentary hearing examined allegations that the firm misused confidential Lendlease information to win work from other clients, including Westpac and Dexus. More than 30 current and former KPMG staff, customers, lawyers and board members are due to testify in the ethics and professional accountability inquiry. Former chief executive Andrew Yates, who stepped down last month, acknowledged failures in the firm’s handling of a whistleblower and its internal investigation. Lendlease Chair John Gillam said the episode caused disruption and extra costs. The hearing also revived calls from Greens Sen. Barbara Pocock to separate audit and consulting businesses and curb the partnership model used by large firms.