Former KPMG partner launches legal action against firm

Former chief operating officer and partner Eileen Hoggett has launched legal action against KPMG after the firm expelled her from the partnership last month following evidence uncovered by Allens in its investigation into alleged audit misconduct.

KPMG chief executive John Sams notified the Parliamentary Joint Committee on Corporations and Financial Services last month that Allens had identified new evidence which substantiated a whistleblower allegation that client information relating to the Lendlease audit had been retained in a locker at KPMG’s Sydney office by Eileen Hoggett, KPMG Australia’s former chief operating officer. After the allegation was substantiated, Hoggett was expelled from the KPMG partnership.

Hoggett has now filed proceedings against KPMG with the case listed for 23 September.

Appearing before the committee hearing last month, Hoggett was questioned about the big four firm’s disciplinary processes and whether they had been applied fairly.

Labor MP Tania Lawrence noted that other former partners at KPMG were given a “dignified exit” with full retirement incentives, benefits, and entitlements despite resigning over alleged misconduct.

Hoggett told the committee that she was still trying to ascertain why the firm took the action it did regarding her conduct matter.

“I've been at the firm for 33 years since I was 20 years old. I've never had a conduct matter. It seemed there’s not an opportunity for me to engage with the firm around the action that they took with me," she said.

"I am still trying to engage with the firm to ascertain why they took that action. Sensibly, I'm looking at all of my possibilities to explore that further,” Hoggett said.

Accounting Times has reached out to KPMG for comment.