KPMG is facing a three-month freeze on new federal government contracts amid a worsening scandal over the treatment of a whistleblower, with the Greens now referring the beleaguered company to the national anti-corruption watchdog.

Accounting firm KPMG is engulfed in a scandal that has seen several senior leaders quit and ASIC launch an investigation into the firm's business dealings.

The firm has agreed to stop bidding for Commonwealth work while the Finance Department investigates its handling of a whistleblower complaint.

KPMG’s Australian arm has been ditched by the country’s government for audit work until September following the fallout of allegations that the firm mishandled client information.

The consulting giant has effectively been banned from new federal government work while the Department of Finance reviews its suitability as a contractor.

KPMG is facing a three-month freeze on new federal government contracts amid a worsening scandal over the treatment of a whistleblower, with the Greens now referring the…