KPMG Australia fines staff up to US$126,000 for 'unacceptable' misconduct in audit scandal


KPMG Melbourne office building

SYDNEY: KPMG Australia said on Monday it imposed penalties of up to A$180,000 ($125,838) on a group of staff after an internal probe into an audit leak scandal confirmed the "unacceptable" misuse of confidential client information.

Seven people have been sanctioned, with consequences ranging from warnings, restricted career progression and lower performance ratings to financial penalties, the firm said.

KPMG has been under intense scrutiny from the Australian government and blue-chip clients since whistleblower accusations that its staff used inside information to win lucrative audit contracts came to light in March.

The financial sanctions are the latest fallout from the scandal that has led to the resignations of the firm's CEO, audit boss and chairman.

Three senior audit partners have already been fined for misusing confidential board papers from real estate company Lendlease.

A KPMG spokesperson said an investigation confirmed that internal documents containing client information were "inappropriately shared" between individuals within the firm.

"The conduct is unacceptable and inconsistent with our values, policies and obligations to protect client information," the spokesperson said.

The findings come after KPMG previously said its past investigations into the allegations failed to substantiate wrongdoing.

Two partners from the group of seven decided to retire from the firm prior to the sanctions being handed down, the spokesperson added.

Australia's corporate regulator, the Australian Securities and Investments Commission (ASIC), is also investigating three partners over their role in the scandal.

ASIC named two of the three partners. Both have left the firm and were among the three partners fined by KPMG for misusing Lendlease board papers. ASIC has not disclosed the identity of the third partner. - Reuters

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