Australian lawmakers grilled KPMG executives at a day-long parliamentary hearing over allegations that confidential Lendlease board papers were misused to bid for audits at Westpac and Dexus.

Two audit partners, Eileen Hoggett and Paul Rogers, have stepped back from audit work and face investigations by ASIC over leaking Lendlease information.

The proceedings are being led by Labor senator Deborah O’Neill, who brought the matter to public attention with a March Senate speech.

Investigations are continuing, with regulators promising further updates as new findings emerge.

Opposition and cross-bench senators raised potential systemic issues, debating whether reforms are needed or if the partnership model itself is flawed.

Initial internal probes did not verify the whistleblower’s claims, but external investigations by Ashurst and Allens produced differing findings, with Allens identifying additional cases of improper document handling.

This is the second major scandal to hit Australia’s accounting sector since 2023, fueling calls for tighter regulation of the partnership-driven Big Four.

Regulatory scrutiny has intensified, with the corporate watchdog and a parliamentary inquiry taking a lead role in examining conduct and governance.

The episode is being compared to PwC’s 2023-24 tax-leak scandal, highlighting increasing scrutiny of how Big Four firms handle confidential information and government contracts.

Critics argue the partnership model—regulated mainly by state laws rather than federal oversight—creates accountability gaps for firms like KPMG.

Parliamentarians questioned whether the partnership structure undermines ASIC oversight and effectiveness, raising concerns about accountability.

KPMG Australia is facing a cascade of consequences after a whistleblower scandal: the resignation of former CEO Andrew Yates, demotions of senior executives, and ongoing investigations into how the firm handled whistleblower claims and confidential client data.