NSW Treasury escalates pressure on KPMG by demanding written assurance that staff linked to the firm’s recent audit scandal are not working on any state government contracts. The demand, outlined in a letter seen by The Australian, zeroes in on personnel risk rather than just processes.
Industry sources say those connected to the scandal now face a likely exclusion from future NSW government work. That mirrors the sweeping informal freeze on PwC Australia after its tax leaks controversy.
The Treasury secretary writes directly to KPMG’s government lead partner, seeking clarity on how the consulting firm is handling the fallout from the compromised audit work. NSW Treasury wants KPMG to explain what happened, who was involved and how such behaviour was allowed to occur under its governance.
The letter calls for a clear account of the scandal’s causes and consequences, not just public assurances. Officials also press KPMG to outline how it will deal with any ethical breaches uncovered.
Industry insiders say the state appears ready to draw a firm line, using access to lucrative contracts as leverage to push for higher ethical standards. A potential ban on implicated staff would echo the strong stance taken after the PwC tax leaks, when that firm’s public-sector pipeline was heavily constrained.
Consulting and audit providers now see that governments can react quickly when trust erodes. The pressure on KPMG forms part of a broader reset in how public agencies manage conflicts, integrity risks and external advisers.
