Lendlease slams KPMG over confidential document breach

• Lendlease slammed KPMG during a parliamentary hearing over allegations that the accounting firm misused confidential board papers to win audit contracts from other companies.
• The corporate watchdog launched formal proceedings into the firm's conduct following the resignation of several senior KPMG leaders in May.
• Ongoing investigations aim to uncover the full scale of inappropriate document handling after initial reviews failed to verify the whistleblower's claims.

Construction firm Lendlease (ASX:LLC) criticised KPMG at a parliamentary hearing on June 19 over allegations that confidential client documents were stolen to pitch for other corporate contracts.

The immediate controversy follows a 2024 whistleblower report alleging that Lendlease board papers were used by KPMG to secure audit contracts from companies including Westpac (ASX:WBC) and Dexus (ASX:DXS).

"There are thousands of good people in KPMG, and what's apparent is a few senior people have had a grave misuse of the access privileges they have, and it's a fundamental breach of trust," said Lendlease Chair John Gillam.

The fallout has already resulted in the May resignations of KPMG chief executive Andrew Yates and audit partner Julian McPherson, alongside the demotion of chief operating officer Eileen Hoggett.

Following the announcement, the Lendlease share price was unchanged at $6.80.

The broader dispute intensified after law firm Allens was appointed to undertake a new investigation, which has already uncovered additional cases of inappropriate document handling.

Chartered Accountants Australia and New Zealand chief executive Ainslie van Onselen stated to the hearing that the body remains extremely concerned, describing the exploitation of client confidentiality as serious misconduct.