KPMG Australia mulls seeking $100 million in loans from global firm

The Australian arm of embattled consultancy KPMG is considering seeking up to $100 million in loans from the global wing of the firm as it battles with the fallout from a whistleblower scandal that has cost it several marquee clients.

An anonymous KPMG whistleblower warned the firm of a raft of serious allegations in 2024, including that senior partners had misused confidential information to win work, but his claims were dismissed until Senator Deborah O’Neill went public with the allegations in March.

On Monday, The Australian Financial Review reported that KPMG Australia chief executive John Sams was in the process of asking KPMG’s global network of firms to loan his division up to $100 million, and agree to waive its fee to use the KPMG name and resources, which is worth about the same amount.

KPMG is structured as a network of quasi-independent consultancies that operate in different territories under the ultimate supervision of the global head office.

“KPMG Australia continues to work collaboratively with KPMG International to assess financial projections,” a KPMG spokesman said. “KPMG International will consider any funding request in accordance with its governance arrangements.”

No formal request has yet been made by KPMG Australia.

The firm has lost major clients here with contracts worth tens of millions annually including Macquarie and ANZ, though some of those deals were yet to start or will take years to terminate.

Sams, who was appointed to lead the firm in July, has already presided over major job cuts.

The loan, as reported by the Financial Review, would help KPMG keep clients and retain partner pay at a higher level. There is no suggestion KPMG Australia is in any solvency risk.

More to come.

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