The Parliamentary Joint Committee on Corporations and Financial Services (PJC) has called the resignation of KPMG chair Martin Shepphard, senior audit partners Eileen Hoggett and Paul Rogers, and the release of an ‘action plan’ as a justification of allegations of misconduct, “in the national interest”.
“The specific allegations raised by the KPMG whistleblower continue to expose significant systemic and structural flaws in the governance and operations of KPMG and the audit and consultancy industry,” the committee said in a statement.
Also reportedly identified was “a fundamental lack of ethical and professional standards in the delivery of services that are integral to ensuring the stability and integrity of Australia’s financial system and markets”.
The committee acknowledged the matters were brought to light “in service of the public interest”, and noted the professional and personal risk of calling out unethical and dishonest behaviour.
“The committee again expresses its admiration and extends its thanks to this individual for their honesty, courage and resilience in bringing these matters into light.”
In its statementdetailingan ‘action plan’, KPMG revealed an intention to appoint an independent board chair for the first time in light of the most recent resignations.
Thefirm also acknowledged the Department of Finance’s Independent review, highlighting its intention to fully co-operate.
Correspondence received on 18 June and published 23 June from senator Katy Gallagher clarified that the previously announced independent review “will provide Finance with an independent assessment of the adequacy of relevant aspects of KPMG’s governance, culture, ethics and integrity frameworks to enable an informed decision on the Australian Government’s future contracting approach with KPMG”.
“Finance has approached Dr Ian Watt AC to undertake the independent review and his response is expected early next week”.
A written report to the Secretary of the Department of Finance is due 30 September 2026. While the PJC’s oversight of the sector is ongoing, KPMG has remained a focus of its public hearings in light of several request documents reportedly being withheld under professional privilege.
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