KPMG Australia has admitted that its staff improperly shared confidential Optus information with an internal team pitching for rival Telstra’s audit work, breaching the company’s ethical standards, Reuters reported.
The disclosure, made by KPMG Australia chairman Martin Sheppard at a parliamentary hearing, confirms earlier whistleblower allegations that the company had previously said were not supported by internal and external reviews.
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According to the news agency, Sheppard told lawmakers that “The Optus, Telstra matter emerged very recently”.
The case comes alongside separate allegations that KPMG used confidential Lendlease board papers in bids for major audit mandates with Westpac and property group Dexus.
These Lendlease-related claims have dominated the scandal to date and increased pressure on the company.
Former KPMG Australia CEO Andrew Yates told the hearing that evidence concerning Optus, uncovered by law firm Allens, triggered his resignation last month.
Lendlease was not informed until May 2025, around a year after the whistleblower first raised concerns internally.
Lendlease chairman John Gillam called KPMG’s conduct a “fundamental breach of trust”.
Lendlease has since decided to end its nearly 70-year audit relationship with KPMG.
Yates said he had not informed Optus of the complaint and could not recall when Westpac and Dexus were notified.
Lawmakers at the hearing indicated that tougher regulation of the Big Four accounting companies may be required.
Earlier this month, KPMG deleted a global report on AI after multiple case studies were found to be inaccurate and apparently generated from AI hallucinations.
