KPMG Australia chair and partners resign amid scandal

KPMG Australia is undergoing a dramatic leadership overhaul as its chairman and two senior partners resigned on Tuesday, following a parliamentary hearing that intensified scrutiny over the firm's handling of a major whistleblower scandal. The departures come amid allegations that staff improperly accessed confidential client information to win new business, breaching fundamental ethical standards.

National chairman Martin Sheppard and audit partners Paul Rogers and Eileen Hoggett will leave the partnership. Their exits follow the recent resignations of former chief executive Andrew Yates and audit head Julian McPherson in late May. Interim chief executive Stan Stavros stated the decisions were necessary and immediate, acknowledging the firm had failed to meet expected standards and recognizing the impact on the whistleblower, staff, clients, and the community.

The scandal centers on allegations that KPMG audit partners accessed confidential board documents from long-standing client Lendlease, and potentially from other major firms including Macquarie Group, Westpac, Dexus, and Optus, to gain a competitive advantage in securing audit contracts. A whistleblower first raised...