July 2, 2026 — 9:58amKPMG’s Sydney headquarters went into lockdown on Wednesday over a threat from an employee as the embattled firm prepared to announce former SBS boss Michael Ebeid as its new chair to start rebuilding its leadership in the wake of a whistleblower scandal.Ebeid replaces Martin Sheppard, who resigned over his handling of the scandal, and plans to appoint a new chief executive this month after a leadership clean-out triggered by KPMG executives accessing sensitive customer documents to help bid for new business.KPMG’s Barangaroo headquarters were in lockdown yesterday over an employee threat.Dominic LorrimerBut the build-up to the announcement, which was formally made public on Thursday morning, was disrupted by an incident at KPMG’s harbourside Sydney headquarters in the corporate Barangaroo precinct on Wednesday.“KPMG was advised late yesterday morning that a staff member had made a threat and immediately implemented emergency response procedures,” a spokesman said. “We were advised around midday by police that the individual had been taken to care facilities, and notified staff that the potential threat had been resolved.”The incident was first reported by Instagram page The Aussie Corporate. The nature of the employee’s threat or its motivation is unclear.KPMG said Ebeid’s appointment was the first step under the action plan unveiled last week to address integrity issues.“I have agreed to take on this role because I believe in and respect KPMG. Despite the challenges the firm is facing, my resolve to support its important work is even stronger. I believe KPMG can recover, rebuild and emerge a better firm,” Ebeid said.“My mandate is to strengthen independent oversight, make integrity central to everything we do, and drive the cultural and governance reforms needed to buildconfidence.”Ebeid, who has been on KPMG’s Asia-Pacific board since last year, said his immediate priority was to appoint a new chief executive after former boss Peter Yates was forced to resign over the whistleblower scandal.KPMG’s new independent chairman Michael Ebeid was among those called before a parliamentary hearing last month over the whistleblower scandal.Getty Images“The new CEO appointment is a critical next step,” Ebeid said.“We are adding an independent selection panel and working with external agencies, including Riverstone Associates and Korn Ferry, on executive succession. I expect the board to confirm the new CEO before the end of July.”There is no suggestion Yates or Sheppard were involved in any misconduct, only that partners at the firm were unhappy of their handling of the whistleblower allegations.KPMG also responded to the huge changes being proposed by the federal government on Wednesday to deal with the industry’s cultural problems, which could include forcing the consulting giants to spin off the audit services that are the core of their business, and slashing the number of partners allowed to as few as 400.KPMG said it has been “actively engaging in the Treasury review process and will continue to work constructively with government and industry as the options paper progresses”.“KPMG continues to support reforms that strengthen governance, transparency, auditor independence, firm-level regulatory oversight and public confidence in the profession,” a spokesman said.The changes being considered were first proposed following the PwC tax scandal but progress stalled until KPMG’s current scandal came to light in March this year.The Business Briefing newsletter delivers major stories, exclusive coverage and expert opinion. Sign up to get it every weekday morning.Colin Kruger is a senior business reporter for the Sydney Morning Herald and The Age.Connect via email.From our partners