Ousted KPMG chief operating officer commences legal proceedings

KPMG’s former senior executive has launched legal action in the Supreme Court of NSW after being terminated by the firm last month.

Author’s note: This story first appeared in HR Leader’s sister brand, Accounting Times.

Former chief operating officer and partner Eileen Hoggett was expelled from the partnership last month following evidence uncovered by Allens in its investigation into alleged audit misconduct.

KPMG chief executive John Sams notified the Parliamentary Joint Committee on Corporations and Financial Services last month that Allens had identified new evidence which substantiated a whistleblower allegation that client information relating to the Lendlease audit had been retained in a locker at KPMG’s Sydney office by Eileen Hoggett, KPMG Australia’s former chief operating officer. Following the substantiation of the allegation, Hoggett was expelled from the KPMG partnership.

Hoggett has now filed proceedings against KPMG, with the case listed for 23 September.

Appearing before a Parliamentary Joint Committee on Corporations and Financial Services hearing last month, Hoggett was questioned by the Committee about the big four firm’s disciplinary processes and whether they had been applied fairly.

Labor MP Tania Lawrence noted that other former partners at KPMG were given a “dignified exit” with full retirement incentives, benefits, and entitlements despite resigning over alleged misconduct.

Hoggett told the committee that she was still trying to ascertain why the firm took the particular action it did in her regards to her conduct matter.

“I’ve been at the firm for 33 years since I was 20 years old. I’ve never had a conduct matter. It seemed there’s not an opportunity for me to engage with the firm around the action that they took with me.”

"I am still trying to engage with the firm to ascertain why they took that action. Sensibly, I’m looking at all of my possibilities to explore that further,” Hoggett said.

Accounting Times has reached out to KPMG for comment.

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