The firm told a Senate inquiry that it only handled a related employment issue
Ashurst has contested KPMG’s claim that it engaged the law firm to investigate a former executive’s allegations in relation to the Big Four firm’s audit leaks scandal, reported The Australian Financial Review.
Ashurst supposedly conducted its investigation from June to August 2025, after KPMG concluded its own internal check. Ashurst reportedly said no wrongdoing had occurred.
The law firm’s involvement was called into question after KPMG eventually confessed to some of the allegations made by a former executive. Ashurst partner Jane Harvey and global managing partner Paul Jenkins both asserted at a Senate inquiry on Friday 19 June that the firm had never investigated such a matter – or been asked to.
The firm said it had been asked to advise on a related employment matter and not the allegations. Jenkins said KPMG may have been mistaken in response to parliamentary inquiry chair Deborah O’Neill asking whether Harvey and Jenkins were concerned that Ashurst’s name had been used in the presentation of inaccurate information.
Nonetheless, KPMG told independent director Jane Hemstritch that Ashurst had launched the investigation; subsequently, Hemstritch told the whistleblower that Ashurst had initiated an external investigation.
Coalition senator Paul Scarr inquired about an email sent to the whistleblower before a deed of release was inked regarding the launch of Ashurst’s investigation. Harvey disavowed it.
Ex-NSW premier Mike Baird, Hemstritch and independent director Patty Akopiantz all called for another investigation to be conducted by Allens after Ashurst's supposed investigation wrapped up. Findings from the Allens investigation corroborated some of the whistleblower’s allegations; as a result, KPMG chief executive Andrew Yates and audit head Julian McPherson resigned.
KPMG alleged last month that the investigations conducted by Ashurst and Allens – along with its own internal investigation – contained “shortcomings,” per the AFR.
A KPMG regional board subcommittee is supervising Allens’ investigation, which has involved partners Christopher Kerrigan and Ross Drinnan. Carmel Mortell is deputy chair of the subcommittee and is joined by Hemstritch, Akopiantz and ex-SBS chief executive Michael Ebeid.
Yesterday 21 June, the whistleblower told the Senate inquiry that KPMG initiated steps to terminate him a month after he first raised his concerns; he also said the Big Four firm spent two years discrediting him.
The whistleblower declined to participate in Allens’ investigation, calling it “choreographed” and a “sham”, per AFR.
