KPMG Australia will appoint an independent chair as part of an overhaul following a scandal about its use of confidential client data to win new contracts.The firm said that Martin Sheppard will leave “shortly” and be replaced by an independent chair. Also departing are Paul Rogers and Eileen Hoggett, two senior partners who have been implicated in allegations that confidential client data from some of Australia’s largest companies was used to bid for new audit contracts. Andrew Yates, KPMG Australia chief executive, and Julian McPherson, the audit leader, both stood down three weeks ago after the firm said its investigations into a whistle-blower’s claims had “fallen short”.The fresh round of senior departures comes less than a week after Sheppard, Rogers, Hoggett and other partners and board members appeared before a parliamentary committee to discuss the whistle-blower’s allegations and how the firm responded to them. Sheppard was singled out for criticism by frustrated senators during the hearing. They told him they did not trust him as KPMG refused to provide details of multiple investigations into the allegations conducted both internally and by external law firms.Sheppard agreed late on Friday to provide relevant documents to the committee.Will a Middle East peace deal make any difference to inflation? Listen | 32:03KPMG is the second of the Big Four consultants to come unstuck in Australia over the inappropriate use of data. PwC’s “tax leaks” scandal forced out senior management and led to a major overhaul of its operation in the country, including the appointment of an independent chair and board members.KPMG Australia told its partners on Tuesday about the leadership changes and that an “action plan” had been launched.A fresh external investigation – dubbed a “lessons learned review” – regarding the whistleblower allegations will be immediately conducted by Principia Advisory. KPMG said it would publish the findings.“The decisions announced today are necessary and immediate,” said Stan Stavros, the interim chief executive of KPMG Australia. “We did not meet the standards expected of us, and we recognise the impact this has had on the whistleblower, our people, our clients and the community.”He said the parliamentary committee’s inquiries “highlighted issues, including unethical behaviour by senior personnel and the human impact of KPMG’s handling of the whistleblower”, adding: “KPMG Australia is focused on ensuring those failings are understood, addressed and not repeated.” – Copyright The Financial Times Limited 2026