# KPMG ban on government work extended to February

> The accounting firm faces a longer suspension after an independent review found serious ethical failings in how it handled a whistleblower complaint.
- Title: KPMG ban on government work extended to February · Abc
- Summary: The accounting firm faces a longer suspension after an independent review found serious ethical failings in how it handled a whistleblower complaint…
- Keywords: kpmg, australian government, audit leaks scandal, whistleblower, ian watt, john sams, michael ebeid, asic, big four accounting firms, government contracts, news, politics
- Source: Abc — https://abc.net.au/news/2026-10-22/audit-leaks-scandal-kpmg-ban-on-government-work-extends-to-2027/107297484
- Published: 2026-10-22T05:35:31+00:00
- Read time: 2 min
- Topics: kpmg, australian government, audit leaks scandal, whistleblower, ian watt, john sams, michael ebeid, asic, big four accounting firms, government contracts, news, politics
## Government extends KPMG ban
The federal government has extended its ban on accounting firm KPMG bidding for new government work until at least the end of February, following a review that found serious ethical failings.
## What triggered the review
Ian Watt was commissioned by the Department of Finance to conduct an independent review into KPMG following allegations its audit partners misused client data then mishandled a whistleblower's complaint about it.
## The new deadline
The Department of Finance agreed with KPMG to extend the pause on bidding for Australian government work until February twenty-eighth, twenty twenty-seven. During this period KPMG must provide an implementation plan and quarterly progress reports.
## Watt's findings on culture
Dr Watt found the way KPMG handled the whistleblower's complaint revealed serious ethical failings by some senior members and significant cultural concerns within the firm that had been warned about before.

> serious ethical failings by some senior members of KPMG
## Trust takes time to build
Dr Watt said trust is not restored through assurances alone. Trust takes time to build, and while transparency builds trust, lack of transparency damages it. KPMG has appointed Kerry Schott for independent oversight.

> Trust, however, is not restored through assurances alone.
## KPMG leadership accepts findings
KPMG CEO John Sams and chairman Michael Ebeid said they accepted the findings and recommendations. They acknowledged the report lays bare their failings and that changing culture takes longer than changing roles or structures.

> Confidence in KPMG's suitability for Commonwealth work must be earned through evidence of effective, lasting change.
## Senator Pocock calls for permanent ban
Greens finance and public service spokesperson Senator Barbara Pocock said the extension was not dealing with the issue. She noted that Lendlease, Macquarie Group and ANZ have sacked KPMG as auditors.

> At a time when some of Australia's biggest corporate players like Lendlease, Macquarie Group and ANZ have sacked KPMG as auditors, why would the government consider letting them back in the fold?
## Broader Big Four concerns
Senator Pocock said a federal inquiry into the KPMG audit leaks scandal heard one hundred fifty-three reports of misconduct to ASIC in the past three years in Big Four firms, with forty-eight potential whistleblowers making…

> The sheer volume is alarming and confirms there are serious problems within the Big Four in relation to misconduct.
## Key takeaway

Australia's federal government extended its ban on KPMG bidding for government work until February twenty-eighth, twenty twenty-seven, after a review found serious ethical failings by the firm's leadership.