KPMG Australia barred from new Victorian government work after partner expulsion
The firm will not pursue new Victorian state contracts until 30 September after fresh evidence confirmed that confidential Lendlease documents had been retained inside KPMG.
KPMG Australia has been barred from pursuing new work for the Victorian government until 30 September 2026, following a further escalation of the confidential-information scandal that has engulfed the firm.
The restriction requires KPMG to withdraw from current Victorian government tenders and refrain from bidding for new contracts. Exceptions may be permitted where the firm has a unique capability, where urgent work is required or where continuity of an existing service is considered essential.
The decision followed KPMG’s removal of a senior partner after an investigation uncovered fresh evidence concerning confidential documents belonging to property group Lendlease. KPMG did not identify the partner in its public statement, but Australian media reported that she was former chief operating officer Eileen Hoggett.
The investigation found evidence that confidential Lendlease board documents had been retained in a locker at KPMG’s Sydney office. Reporting on the scandal has alleged that information originating from Lendlease was shared internally and used in connection with KPMG’s attempts to win work from other organisations.
Hoggett stepped down as KPMG Australia’s chief operating officer in June but initially remained a partner while the firm’s investigations continued. She had previously denied wrongdoing, and an earlier investigation had not substantiated the most serious allegation concerning the documents.
New chief executive John Sams said the latest evidence established conduct that was “totally unacceptable”. KPMG said it had informed affected clients and relevant authorities and would continue to cooperate with regulatory and parliamentary inquiries.
The Victorian restriction follows KPMG’s earlier decision to pause bidding for new Australian federal government work until the end of September. The firm has also sanctioned seven staff members, with financial penalties reported to be as high as A$180,000, following findings of inappropriate access to or use of confidential information.
The latest developments deepen the challenge facing Sams, who was appointed chief executive as KPMG attempted to restore confidence in its governance and handling of client information. Regulatory and parliamentary scrutiny of the wider scandal remains ongoing.
Related Coverage
Bloomberg/The Edge: KPMG stops pursuing new Victorian governm work
Explains the terms of KPMG’s arrangement with the Victorian government and the limited circumstances in which exceptions may be granted.
Australian Financial Review: KPMG sacks senior partner after new evidence emerges
Reports the identification of Eileen Hoggett and the findings arising from the latest stage of the investigation.
The Australian: KPMG partner expelled over confidential files
Provides further detail on the Lendlease documents reportedly discovered in a Sydney office locker.
Reuters: KPMG pauses bidding for Australian federal government work
Places the Victorian restriction within the wider government response to the scandal.
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This is part of Big4News’ continuing coverage of the KPMG Australia Audit Leak Scandal.
KPMG Australia Audit Leaks Scandal
The KPMG Australia scandal that erupted publicly in March 2026 represents one of the most significant integrity crises to hit the Big Four in Australia since the PwC tax leaks affair. At its core are allegations—first raised internally by a whistleblower in 2024 and later amplified through parliamentary privilege—that senior partners misused highly conf…