KPMG is set to provide the largest group of witnesses at the upcoming parliamentary inquiry into a high-profile audit leaks scandal involving the misuse of confidential client information to gain business advantages. The next hearing is scheduled for August 14, with an official list of attendees expected to be released shortly.
The controversy first emerged earlier this year when Labor Senator Deborah O’Neill publicly disclosed allegations made by a KPMG whistleblower under parliamentary privilege. The initial claims, raised by an audit director in 2024, were originally dismissed internally, and the individual was subsequently dismissed from the firm. However, following Senator O’Neill’s revelations, the majority of the whistleblower’s claims were upheld, leading to the departure of KPMG’s chairman, chief executive, and chief operating officer. All three executives were reportedly involved in the firm’s acknowledged mistreatment of the whistleblower.
Among those expected to attend the hearing are KPMG’s general counsel Louise Capon, deputy general counsel James McClelland, and head of human resources Dorothy Hisgrove. Michael Ebeid, an independent director and the firm’s chairman designate, is also likely to face scrutiny. Ebeid’s involvement has drawn additional attention due to his concurrent role as chair of Screen Australia, where an unrelated whistleblower matter arose around the same time as the KPMG audit director’s disclosures. Ebeid’s appointment as chair remains undecided, pending a vote among KPMG partners scheduled for August 6-12.
Other KPMG officials potentially appearing include Bill Thomas, chairman of KPMG International, his successor Gary Wingrove, and global general counsel Anne Collins. The inquiry may also call former Asia-Pacific chair Martin Sheppard, who left amid the scandal, and former chief operating officer Eileen Hoggett, who was terminated after investigators found evidence she had taken confidential documents from Lendlease and stored them in her personal locker. While two investigations by law firm Allens initially found no proof of this, a third inquiry confirmed the whistleblower’s allegations.
Kim Lawry, a former partner involved in reviewing the Lendlease documents and in the successful bid to secure the Westpac audit account, has also been notified to appear. KPMG won the Westpac audit contract, valued at approximately AU$38 million, overtaking PwC. During the tender period, Sheppard reportedly stayed overnight at the home of Peter Nash, then a Westpac board member and former KPMG leader. Nash has since resigned from the Westpac board; it remains unclear whether he will be called to testify. Current Westpac director Michael Ullmer, also a former KPMG director, is expected to attend the inquiry.
Michelle Hinchliffe, director of Macquarie Group, which appointed KPMG as its auditor in place of PwC, is also anticipated to be called. Additionally, representatives from SingTel Optus and rival Telstra may be summoned, as both clients reportedly had confidential documents accessed improperly by KPMG auditors.
The parliamentary inquiry aims to clarify the extent of KPMG’s misconduct, the firm’s handling of whistleblower allegations, and potential conflicts of interest involving its leadership and client relationships. The developments have intensified scrutiny over audit industry practices and governance standards within Australia’s largest accounting firms.