KPMG Australia has expelled a senior partner following the discovery of evidence that she improperly stored and shared confidential client documents. The firm’s new chief executive, John Sams, confirmed the development during an all-partner call, marking a significant escalation in the firm's ongoing response to a major data misuse scandal. The partner, Eileen Hoggett, had previously denied allegations that she kept sensitive board papers in her locker, but new evidence—including an internal email—contradicted those denials.
The documents in question reportedly contained commercially sensitive audit information from Lendlease, including pricing data. These materials were allegedly used by partners to gain an unfair advantage while bidding for audit work with other major clients, such as Westpac and Dexus. This revelation confirms the core of whistleblower allegations that have plagued the firm since they were first raised in parliament by Senator Deborah O’Neill in March 2026.
This expulsion follows a series of leadership departures at the firm, including the resignations of the former chief executive, chairman, and head of audit. KPMG had initially conducted an internal investigation that failed to substantiate the claims, a process that has since been criticized as inadequate. The firm has now acknowledged that its previous handling of the matter was insufficient and has apologized to the whistleblower for the delay in uncovering the truth.
Beyond the expulsion, KPMG has imposed sanctions on seven other employees, ranging from financial penalties of up to $180,000 to reduced performance ratings and career restrictions. The firm is currently working to restore its reputation as it faces ongoing scrutiny from the Australian corporate regulator, ASIC, and the broader professional services industry. The public and clients are now watching to see if these leadership changes and disciplinary actions will be enough to address the underlying governance failures.