KPMG Laptop Search and Whistleblower Allegations Highlight ‘Culture of Fear’, Parliamentary Inquiry Reveals

## KPMG’s Laptop Searches and Whistleblower Claims

Julian McPherson, former head of audit at KPMG, testified that he authorised a search of a whistleblower’s laptop on 30 May 2024. He said the action was taken “in the context of us being concerned that the individual might be seeking other employment and we were concerned about whether information from KPMG might have been shared outside.”

Later that day the whistleblower emailed McPherson, warning that the incidents were not isolated but “endemic within the organisation whereby profit and revenue growth is placed above everything else, including integrity, people, wellbeing and fundamentally doing the right thing.” He described a “lack of speak‑up culture, the culture of fear, retribution and revenue growth at all costs” as unacceptable.

McPherson reported that he first consulted KPMG’s human‑resources team, then its legal team, before informing the then‑chief executive Andrew Yates.

Further laptop searches were authorised on 21 November 2024 and 26 November 2024 to investigate the whistleblower’s allegations. Yates told the inquiry that those searches uncovered evidence supporting the whistleblower’s claims, prompting KPMG to begin a formal investigation that had not previously been disclosed to the firm’s executive board.

## KPMG’s Confirmation of Client Data Leaks

During the same parliamentary hearing, Martin Sheppard, chair of KPMG, confirmed that staff had leaked confidential information belonging to Optus to a team bidding for an audit contract with Telstra. He stated that the information should not have crossed the firm’s “ethical divider.”

KPMG had previously been unable to substantiate a March allegation that colleagues leaked Telstra‑related data. Sheppard noted that subsequent investigations verified a leak involving Optus data.

The firm has also acknowledged a prior breach involving Lendlease client information, where the implicated staff self‑reported to the peak accounting body. Sheppard could not confirm whether the staff involved in the Optus leak had taken the same step.

## Former CEO’s Admission

Former CEO Andrew Yates admitted that KPMG treated the whistleblower primarily as an “employment‑related” issue rather than a genuine speak‑up concern. He said the firm attempted to resolve the dispute with a deed of release by 2025, but the whistleblower’s job prospects were harmed after a reference from a KPMG employee. The whistleblower is no longer employed by KPMG.

Senator Paul Scarr highlighted the severe personal, mental and career impact on the whistleblower. Yates expressed that he was “deeply distressed” by the testimony.

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