Consulting giant KPMG’s whistleblower scandal is back before a parliamentary committee, with some of the country’s biggest companies giving evidence.On Friday, the joint committee on corporations and financial services investigating the scandal is hearing testimony from KPMG clients before grilling the consulting firm over its actions. The KPMG scandal started with a whistleblower alleging that partners used confidential client data to pitch and win other audit contracts. The whistleblower – a former audit director – alleged some partners at KPMG bent the rules to win lucrative contracts.The firm’s chief executive Andrew Yates and former head of audit Julian McPherson have resigned in the aftermath of the scandal.Westpac, Dexus first-upWestpac and property giant Dexus have appeared on Friday morning.Committee chair and Labor senator Deb O’Neill asked both businesses whether they would have known about KPMG’s alleged wrongdoing if it wasn’t for the whistleblower and parliament.Both answered with a resounding no.KPMG, which was Dexus’ internal auditor, was also bidding for company’s external audit contract.Dexus chairman Warwick Negus said it was almost certain that his organisation would not have been aware of KPMG’s alleged wrongdoings. “When we were first told of the issue, KPMG characterised it as a matter concerning a dissatisfied employee,” Mr Negus said.“We were subsequently advised that the issues concerning Dexus were unsubstantiated, and that an independent legal review had confirmed this.”He said whether KPMG remained as its auditor “should be considered once we have more information, including from the work of this committee.”No Chinese wallsKPMG has been accused of not correctly using its Chinese walls – a system used by businesses such banks, law firms or corporations to protect information that could create conflicts of interest – to keep important information siloed within the business.Westpac director Michael Ullmer, who was first-up before the committee, said these walls were not put up, leading to the scandal. “On the one hand, as clients, you value dealing with professionals who have experience in your industry,” he says.“The only way you get experience in an industry is by working with many different companies in that industry. “But at the same time, you expect that the confidential information, the secrets that they gain access to, will remain confidential, and only are in a sense of building their sort of general knowledge of what happens across, rather than referring to matters specifically.”More to come
KPMG to be grilled over whistleblower
Consulting giant KPMG’s whistleblower scandal is back before a parliamentary committee, with some of the country’s biggest companies giving evidence.











