Ex-KPMG Executive Sues Firm After Dismissal Over Lendlease Documents
Synopsis
Former KPMG executive Eileen Hoggett has sued the firm following her dismissal over confidential Lendlease documents allegedly found in her locker, adding a new legal challenge to the accounting giant’s continuing whistleblower scandal.
Former KPMG executive Eileen Hoggett has launched legal action against the firm following her abrupt expulsion over confidential Lendlease board documents allegedly found in her workplace locker.
The NSW Supreme Court has confirmed that a summons has been lodged in Hoggett’s name against a KPMG entity, with the first hearing scheduled for September 23.
The case adds another chapter to the growing turmoil at KPMG Australia, which has been facing damaging allegations following a whistleblower complaint.
Hoggett, the firm’s former chief operating officer, was expelled in July after new evidence emerged supporting allegations that sensitive Lendlease documents had been kept in her Sydney office locker and subsequently used to help win business from other clients.
Former Executive Challenges Expulsion
Hoggett had previously denied that the documents were in her locker. However, she told a parliamentary hearing last month that she had subsequently been shown an email from May 2023 indicating she had possessed copies of Lendlease documents.
The email, which she discussed during the hearing, appeared to suggest that the documents could be viewed discreetly when a colleague returned to Sydney. Hoggett said the circumstances surrounding the documents were still being examined.
KPMG’s new chief executive, John Sams, dismissed Hoggett immediately after the new evidence emerged. No court documents relating to her new legal action are publicly available at this stage, meaning the precise grounds of her claim have not yet been disclosed.
Financial Cost Adds to Dispute
Hoggett has also described the significant financial impact of her expulsion after 21 years as a KPMG partner. She told the parliamentary inquiry that she would lose accrued annual leave, a retirement payment to which she had contributed and pay for the final month before her expulsion.
“I don’t get my accrued annual leave. I don’t get the retirement payment,” Hoggett said, describing the outcome as a “significant financial penalty”.
Her lawsuit now puts the circumstances of her dismissal under further legal scrutiny. The September 23 hearing is expected to provide the first indication of how the dispute will proceed.
The case comes as KPMG continues to deal with the broader fallout from the whistleblower scandal, which has raised questions about the firm’s handling of confidential client information, internal governance and professional standards.
Source: The Sydney Morning Herald
Vishal is an experienced Editor at Inspirepreneur Magazine with key interests in artificial intelligence, eCommerce, entrepreneurship, lifestyle and startup sector. Prior to joining Inspirepreneur, he was a Content Writer cum Correspondent at Siliconindia Magazine, where he worked on Company Profiles, Cover Stories, Executive Profiles, Feature Articles and Thought Leadership content.
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