KPMG misconduct fallout spreads across all tiers of government

The toxic effects of beleaguered audit and consultancy firm KPMG’s snowballing governance problems are now set to trickle down to all three tiers of Australian government; Federal, state and local governments are bracing for the impact.

In a scenario that would dwarf the massive PwC scandal that resulted in the immediate amputation of its consulting arm (to be renamed Scyne after the firm’s liquid confidentiality basis was exposed) account holders are going skate shopping.

Things really started to blow up for KPMG last Thursday and Friday, after the Federal Ministry of Finance declared the latest scandal a “major incident” under existing procurement rules, a rehabilitation move aimed at exonerating governance violators (such as PwC).