KPMG contracts under review as Greens call for the firm’s ban

Further to recent coverage of internal and external investigations and a parliamentary hearing on misconduct revelations within KPMG, a spokesperson from the Federal Department of Finance has said that the department “is taking these allegations extremely seriously and is in active conversation with KPMG on this matter”.

The spokesperson’s statement, provided to Accounting Times, went on to note that: “Finance is reserving its rights in relation to this, including the potential to suspend KPMG from the MAS Panel, or to seek a mutual agreement for KPMG not to bid for any Commonwealth work for a pre-determined period of time.”

The department has, the spokesperson added, notified other Commonwealth entities that this is a “significant event that is being assessed by Finance", adding that entities may seek assurance from KPMG whether currently engaged individuals are associated with these matters, and if so, entities should consider additional risk mitigation steps.

“Entities retain the contractual right to request the removal of specific personnel from work orders consistent with the Head Agreement,” the statement concluded.

The Greens are demanding that the federal government go further and ban the big four firm from all government contracting work.

In a statement issued late last week, Senator Barabara Pocock – the minor party’s spokesperson for finance and public sector – cited AusTender, the federal procurement informational system, to detail a number of active KPMG contracts reportedly worth $27.4 million with organisations include the Australian National Audit Office (ANAO), the CSRIO, the Bureau of Meteorology (BoM), the Department of Industry, Science and Resources (DISR) and the ATO.

Referencing allegations of confidential client information being shared to affect tender applications, using AI for benefit during exams, breaching audit independence and mishandling whistleblower concerns, the Greens urged Labor to ban KPMG from all government contracts.

Senator Pocock said: “The latest KPMG scandals show the big four firms making a mockery of the parliament yet again. They have made millions of dollars from government work and abused the system. Labor needs to read the room and ban KPMG.”

“Why would the government hire a firm that’s been accused of sharing confidential client information to audit its books?”

She continued: “The government must stop allowing the big four to self-regulate.”

“Labor needs to put an end to their special treatment – on tax, public reporting, professional liability, and whistleblower protections – and regulate the big four like other large Australian firms.”

In relation, the Greens drew attention to their bill, introduced last year, intended to allow the Commonwealth to ban “dodgy contractors” from entering government contracts.

These recent demands have been a running theme for the party, which pushed for a five-year ban on government work with PwC in 2024, as reported by Accounting Times’ sister brand, Accountants Daily.

Senator Pocock added: “The government needs to stop feigning outrage and expressing ‘deep concern’ at corrupt practices and instead introduce the legislative and structural reforms that enforce transparency and public accountability. Enough is enough.”