‘Completely false’: whistleblower inquiry exposes emails from KPMG’s new chair

In a move intended to “address integrity issues, strengthen accountability and rebuild trust”, KPMG Australia has announced the appointment of Michael Ebeid AM as its first independent chairman, subject to partnership agreement changes and partner approval.

In a statement to media, Ebeid said: “I have agreed to take on this role because I believe in and respect KPMG.”

“Despite the challenges the firm is facing, my resolve to support its important work is even stronger. I believe KPMG can recover, rebuild and emerge a better firm,” Ebeid added.

Ebeid has stepped into the role following the sensational exits of chief executive Andrew Yates and chairman Martin Sehppard.

The resignations resulted from the ongoing fallout over the firm’s treatment of a whistleblower who revealed two incidents of client documents being shared inappropriately and one incident of an inappropriate remark about sharing client information.

Shortly after Ebeid’s new position was announced, the Parliamentary Joint Committee on Corporations and Financial Services published a March 2026 email chain between a handful of the firm’s key executives, including Ebeid, deputy chair Carmell Mortell and Sheppard.

Ebeid’s email, which came in response to Mortell and Sheppard sharing transcripts from the inquiry, claimed O’Neill made “no attempt” to contact KPMG before speaking in the Senate “on such a sensitive issue, which itself would be very inappropriate and unfair of her”.

The Senate speech, which aired the allegations of the misuse of confidential client information, was delivered in March.

He went on: “As we know well, many of the statements she makes are completely false including the timeline of events and that he had raises all these whistleblower issues before he entered the HR process to exit the firm, which falsely makes it look like retaliation.”

The new chair then suggested he knew O’Neill and offered to meet with her “should the KPMG team feel it might help for her to hear from an independent non-[executive] director” about what the firm allegedly did about the whistleblower came forward.

A letter from the committee, released with the email chain on Thursday (2 July), said it “provides an insight into Ebeid’s position” on the allegations of serious misconduct and governance failures.

“Given the important role that a new independent chairman will have in addressing integrity issues, strengthening accountability and rebuilding trust at KPMG Australia, the committee considers the publication of this email correspondence to be in the public interest,” it said.

The committee refuted claims that O’Neill knows Ebeid and said neither the senator nor the other members have met with him since the whistleblower allegations were first raised in the Senate.

KPMG was made aware that the document would be published last Thursday, 18 June, the committee added.

In response to the letter, Ebeid said he was “not aware of the full range of facts” at the time the email was sent.

Having received more detailed information from the ongoing investigation, Ebeid said he now recognises the gravity of the whistleblower’s allegations and KPMG’s shortcomings.

“From what I know and the information I have been provided since that time, I would not have written that email and I am sorry for sending it.

“As I told KPMG partners today, I acknowledge the firm got things wrong but we are serious about fixing mistakes that have been made.

“KPMG is committed to rebuilding trust with our clients, our people, the committee and the broader community.”

In addition to Ebeid’s appointment, KPMG said it has reshaped its board with “equal independent and partner representation”, and has added independent involvement to the chief executive appointment process.

The chief executive role is currently held on an interim basis by Stan Stavros.