The Australian arm of KPMG is facing growing pressure after allegations that confidential client information was leaked and independence rules were breached, prompting leadership changes, contract losses and multiple inquiries.
The scandal has already resulted in the resignation of the firm’s Australian chief executive and placed government contracts under increased scrutiny.
According to reports, the London-headquartered accounting and consulting firm allegedly leaked confidential documents and breached independence requirements around the same period that rival consulting giant PwC became embroiled in its own confidential information controversy.
Contracts Under Threat
KPMG has already lost at least one government contract worth approximately $10 million a year as concerns over the allegations continue to grow.
The company now faces two separate inquiries examining the circumstances surrounding the claims.
The developments have increased pressure on the firm as governments and clients review their relationships with major consulting providers.
Comparisons with PwC Scandal
The allegations emerged against a backdrop of heightened scrutiny of Australia’s consulting industry following the PwC tax leaks scandal.
PwC was previously banned from undertaking Australian government work after confidential tax information was allegedly used for commercial advantage.
The latest controversy has drawn comparisons between the two firms due to the nature of the allegations involving confidential information and governance standards.
Investigations into the claims against KPMG are expected to examine whether confidential material was improperly shared and whether internal rules relating to independence were followed.