CANBERRA – Construction giant Lendlease has publicly condemned KPMG’s handling of confidential client information, telling a Senate inquiry that trust in the consulting firm has been severely damaged following allegations that sensitive information was used to pursue new business opportunities.
Appearing before a parliamentary hearing on Thursday, Lendlease chief executive Tony Lombardo and chairman John Gillham delivered a blunt assessment of the scandal that has engulfed one of Australia’s largest consulting firms.
Lombardo described the conduct as a clear breach of trust.
“They shouldn’t have done that,” he told senators.
Lendlease has relied on KPMG as its external auditor for 68 years, making the revelations particularly significant for a relationship that spans nearly seven decades.
Gillham said trust was fundamental to the functioning of financial markets and corporate governance.
“The capital markets, the debt markets, they all rely on trusted information,” he said. “It’s right at the heart of how we act. This is a very disappointing set of circumstances.”
Despite its concerns, Lendlease remains tied to KPMG for the current audit process and is expected to continue using the firm for at least the upcoming half-year audit due to the complexity of changing auditors during an active reporting period.
Gillham acknowledged that replacing KPMG would involve significant disruption and additional costs.
“There are thousands of good people in KPMG, let’s be clear about that,” he said. “What’s apparent is a few very senior people had a grave misuse of confidential information.”
He also stressed that none of the individuals currently involved in the Lendlease audit were connected to the allegations under investigation.
A key revelation from the hearing was that Lendlease sought access to documents relating specifically to its own confidential information but was refused by KPMG.
According to Lombardo, the consulting firm cited legal professional privilege as the reason for withholding the material.
“They have not shared with us the documentation,” Lombardo told the inquiry.
When asked directly by a senator whether KPMG had denied the request, Lombardo replied: “Yes Senator, we have asked that question and they have denied.”
The exchange is likely to add further pressure on KPMG, which is already facing intense scrutiny over allegations that confidential client information was improperly used to help secure additional consulting work.
The Senate inquiry continues as lawmakers examine the extent of the alleged misconduct and its impact on public confidence in Australia’s consulting sector.
Source: Senate Inquiry into KPMG, Parliament of Australia.