KPMG will not seek any new ACT government contracts for more than three months after the firm agreed to stop bidding for work while managing the fallout of allegations it misused client information.
The ACT government on Wednesday evening announced it had agreed to the bidding halt with the firm after the serious allegations were aired in Federal Parliament, which prompted several senior staff from the firm to resign.
"The ACT government has also sought assurances from KPMG about past and existing contracts, and no evidence has been identified that ACT government data has been improperly accessed, used or disclosed," the government's statement said.
The bidding pause will run from June 25 to October 9, 2026, and only apply to new procurements and new contracts where KPMG is the sole supplier or subcontracted.
"It will not affect existing contracts, extensions under current agreements, ongoing licensing or use of KPMG products," the government said.
"Proposals submitted prior to 25 June 2026 will continue to be assessed in line with value-for-money and relevant evaluation criteria, including compliance with the Charter of Procurement Values."
The government said it had "acted in line with our commitment to requiring the highest level of probity from suppliers".
"Ethical requirements are embedded in all procurement processes and are expected of all suppliers under a robust legislative framework, ensuring public funds are used responsibly and in line with community expectations," the government said.
KPMG had already agreed to stop bidding for federal government contracts between June 16 and September 30.
The firm is regularly contracted by ACT government agencies and was recently tasked with reviewing the territory's digital health record system as part of a major government-commissioned inquiry into the health system, whose findings were published earlier this month.
The government acknowledged KPMG would initiate independent reviews and strengthen internal oversight but said the "allegations are serious".
"The ACT government will continue to engage with KPMG ahead of 9 October 2026 to determine whether further action is required, taking into account the outcomes of investigations and KPMG's remediation efforts," the government said on Wednesday.
KPMG Australia's chairman, Martin Sheppard, is set to leave the company along with audit partners Paul Rogers and Eileen Hoggett.
Mr Rogers and Ms Hoggett had been named in Federal Parliament for allegedly accessing confidential information from long-term audit client Lendlease with other KPMG staff to help them win additional contracts.
A whistleblower revealed the purported misconduct while also alleging mishandling of documents from Macquarie Group, Westpac, Dexus and Optus.
Several top KPMG staff including former chief executive Andrew Yates have already resigned over the scandal, which was the subject of a blockbuster hearing on Friday that included scorching criticism of the firm.
"The parliamentary committee's inquiries highlighted issues, including unethical behaviour by senior personnel and the human impact of KPMG's handling of the whistleblower," said KPMG's interim chief executive, Stan Stavros.
with AAP
