Australia’s Corporate Leaders Face Parliament Over KPMG Client Data Scandal

Senior executives from some of Australia’s largest companies are set to face lawmakers on Friday as a parliamentary inquiry intensifies scrutiny of KPMG over allegations that confidential client information was misused to secure major audit contracts.

Representatives from Macquarie Group, Westpac, telecom provider Optus and property company Dexus have been summoned to give evidence. Macquarie’s chairman and chief financial officer will appear alongside Westpac’s audit committee chair, Optus’ CEO and the Dexus chair.

The hearing is the second parliamentary session held since a KPMG whistleblower alleged in March that senior audit staff improperly used confidential information to pursue lucrative contracts. Macquarie, Westpac, Optus and Dexus have all been linked to the alleged misconduct.

KPMG initially rejected the accusations as unsubstantiated. However, the accounting firm later acknowledged “unacceptable” misuse of internal documents. The controversy has triggered significant leadership changes, including the departures of KPMG’s CEO, audit chief and chairman, while other employees connected to the matter have left or faced sanctions.

Labor Senator Deborah O’Neill, who chairs the parliamentary committee, said testimony from affected companies would help establish how problems within Australia’s audit sector have negatively affected corporate clients.

The whistleblower, a former senior KPMG executive, alleges confidential Lendlease documents were used to help KPMG compete for audit contracts with Westpac and Dexus. Westpac director Peter Nash subsequently resigned from the bank’s board because of his KPMG connections. Senior KPMG partner Kim Lawry also stepped down after Westpac requested her removal as lead auditor.

Macquarie, meanwhile, has announced a review of its November 2025 decision to award KPMG its audit contract. The whistleblower has questioned whether Macquarie director and former longtime KPMG employee Michelle Hinchliffe’s connections affected the tender process.

During an earlier parliamentary hearing in June, former KPMG chairman Martin Sheppard confirmed that Optus information had been misused during an unsuccessful attempt to secure work with rival Telstra.

Friday’s inquiry will also hear testimony from current and former KPMG executives as lawmakers examine the broader consequences of the KPMG audit scandal and corporate governance failures.