Wider watchdog inquiry launched into consulting firm
The corporate watchdog has launched a formal investigation into a top consultancy firm following allegations it misused confidential information.
The Australian Securities and Investments Commission said it had launched an investigation into budget forecasts, expanding a preliminary inquiry into KPMG, one of the Big Four accounting firms.
The firm’s Australian chairman, Andrew Yates, resigned in May after an internal investigation into allegations of misconduct, following the treatment of a whistleblower and the allegations’ mishandling, was found to have failed to meet the firm’s expectations.
ASIC chief executive Sarah Court said the larger investigation began at the beginning of June.
“We are deeply concerned about what has emerged in the press and are seeking to get to the bottom of the evidence relating to these various incidents,” he told the inquest on Friday.
“Right now it’s an ongoing feast as more information becomes available to us, so I don’t know that there will be an end to this.”
Ms Court said ASIC had made numerous communications to KPMG regarding the official investigation.
“ASIC has been proactively engaging with KPMG and this level of engagement has intensified,” he said.
Ms Court said three of KPMG’s four registered company auditors were under investigation.
Treasury Deputy Daniel Mulino said the federal government is reviewing its contracts with the consulting firm.
“In light of this, I will receive a briefing from the ministry, the Undersecretariat of Treasury, regarding whistleblowing activities,” he told ABC Radio.
“One of the issues we need to examine is the extent to which corporate whistleblower protections apply to partnerships.
“This is not a simple area and that is one of the issues we will be looking at as part of the whistleblower investigation.”
Mr Mulino said ASIC’s powers under company laws and how it interacted with partnerships also needed to be examined.
“There was already an ongoing process, but the allegations against KPMG increased the urgency of this even more,” he said.
Ms Court said ASIC had no information as to why Mr Yates resigned as Australia CEO.
Audit chairman Julian McPherson also resigned from KPMG following the allegations.
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