KPMG Australia’s chief operating officer (COO) Eileen Hoggett has resigned as scrutiny intensifies over whistleblower claims that the company misused confidential client data to secure audit work.
In an internal email to staff, shared with Reuters, interim CEO Stan Stavros said Hoggett has relinquished the position while inquiries are under way. She will remain with the partnership as an audit partner.
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Hoggett, named in the whistleblower’s allegations, was appointed COO in 2023. Her move follows the recent resignation of KPMG Australia’s CEO and head of audit after criticism of how the company’s initial internal review on whistleblower allegations was handled.
KPMG had previously said that internal investigation did not uphold the whistleblower’s claims, which were also provided to a senator from the ruling Labor Party.
In March, Senator Deborah O’Neill told parliament the allegations included that confidential Lendlease board papers were used to support KPMG bids for major audit mandates with Westpac and Dexus.
O’Neill was quoted by the news agency as saying: “Documents were taken from Lendlease by the (KPMG) lead partners on the account, Eileen Hoggett and Paul Rogers, and were physically secured in Ms Hoggett’s locker.”
The case has added pressure on Australia’s professional services industry, which was already under strain after 2023 disclosures that PricewaterhouseCoopers shared confidential government material with prospective clients.
Stavros told staff the company should have handled the whistleblower’s complaints differently. KPMG has now appointed law firm Allens to run a new external investigation.
The New South Wales Government said it has sought assurances from KPMG about its handling of confidential information and whether any staff under investigation are involved in state contracts.
The Victorian Government is also reviewing its contracts with KPMG to check that confidential data has not been misused, according to the Australian Financial Review. A parliamentary hearing on the whistleblower’s allegations is scheduled for 19 June.
