KPMG Australia chief operating officer Eileen Hogget quits amid whistleblower re-investigation
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The news: KPMG Australia’s chief operating officer Eileen Hogget has stepped down from the role while the consulting firm investigates allegations that it inappropriately shared client information to win work.
Hogget will remain in her role as partner in audit and assurance.
The context: In a note sent to KPMG partners seen by Capital Brief, interim CEO Stan Stavros said chief financial officer John Sams would also take on the COO responsibilities.
Hogget’s departure comes less than a week after the departure of chief executive Andrew Yates and national managing partner for audit and assurance Julian McPherson.
It was also announced on Wednesday, as first reported by the Financial Review, that Gayle Dickerson would fill the national managing partner of deal advisory and infrastructure role vacated by Stavros, while Scott Guse fills McPherson’s role.
Guse has been appointed to the national executive committee so will not participate in the national governance board meeting on 1 July. However, he will remain in the role of Queensland chair or partners.
KPMG is re-investigating whistleblower allegations that the company inappropriately shared documents containing client information. A previous investigation dismissed the allegations but KPMG has acknowledged that process was inadequate.
What they said: “I come to this role not having been involved in the whistleblower process, but it is clear to me that we should have handled things differently. I am 100% committed and will ensure we approach the issues in the right way,” Stavros said in the note to partners.
“I want to be open that we should all expect the heightened public scrutiny to continue for some time — as we progress our investigation, work with the regulators and professional bodies examining these matters and continue to engage with the [Parliamentary Joint Committee on Corporations and Financial Services].
“My focus is on placing the business in the best position possible in this environment — both navigating the serious whistleblower-related issues but importantly remaining focused on the market and serving our clients. We must support our people and deliver on our priorities. I will be speaking with you further on this shortly.”
The source: Internal KPMG note
