KPMG CEO Andrew Yates resigns over handling of whistleblower allegations
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The news: Andrew Yates has resigned as chief executive officer of KPMG Australia, effective immediately, following the firm’s repeated failure to adequately address whistleblower allegations relating the misuse of client information.
National managing partner for audit and assurance Julian McPherson will also step down immediately.
The board has appointed Stan Stavros as interim CEO of KPMG Australia while it continues the search for a permanent successor.
The context: KPMG previously reported to professional bodies and regulators that client documents had been inappropriately shared internally. Three partners were sanctioned over the matter and have self-reported to the relevant professional bodies.
An ongoing investigation has since uncovered a separate incident involving the inappropriate internal sharing of documents containing client information.
These three conduct matters were originally raised by a whistleblower. While earlier investigations found the allegations to be unsubstantiated, KPMG has now acknowledged those processes were inadequate.
What they said: “I have been committed to a speak-up culture in our firm, it is clear that in this case we have let ourselves down and I take accountability,” Yates said.
The source: KPMG media release
