Former KPMG partners given period practising ban

Other conditions imposed on Hoggett and Rogers include that they must also cancel their Certificate of Public Practice (CPP) within 14 days and not reapply for a CPP during the period of undertaking.

This means that they cannot practise as a principal in any firm.

In addition, Hoggett and Rogers have undertaken:

• To notify CA ANZ before accepting any employment, engagement, or role where they would provide accountancy services.

• To comply with all applicable professional, ethical, and regulatory obligations arising from their membership of CA ANZ.

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  To provide regular compliance reporting to the PCC.

Hoggett is one of the former partners at the centre of allegations currently engulfing KPMG of misuse of client data by the audit division, which were revealed by a whistleblower. KPMG is being investigated for both misconduct in the audit division as well as its treatment of the whistleblower.

Speaking at the KPMG ethics and accountability public hearing on Friday (14 August), Hoggett spoke about this action by CA ANZ before the parliamentary joint committee on corporations and financial services.

“Yesterday there was a hearing with the disciplinary tribunal, when it was under consideration whether I get suspended during the period of time for the ASIC investigation,” Hoggett said at the inquiry.

“What was mutually agreed is that I had undertaken not to provide any audit services for a specified period, and that any future employment arrangements that I have, that may use accounting skills, that notify, and so we mutually agreed to that undertaking yesterday.”

Further, CA ANZ said that Hoggett and Rogers have undertaken to notify it to comply with all applicable professional, ethical, and regulatory obligations arising from their membership of CA ANZ, and to provide regular compliance reporting to the CA ANZ professional conduct committee (PCC).

Hoggett told the committee that the investigation’s progress is pending completion of a prior ASIC investigation into her alleged handling of confidential Lendlease board documents.

The Australian Financial Review previously reported that Hoggett was expelled from the KPMG partnership (a move she called “unprecedented” at the inquiry) on 24 July after the firm found that Hoggett referred to keeping and sharing a printout of confidential Lendlease board documents in her locker, in an uncovered email.

This follows evidence released after Allens’ Project Magenta investigation into allegations made by a whistleblower, which concerned the locker documents.

“My understanding is that CA ANZ would like to defer investigation until the completion of the ASIC investigation, and so they sought to look at what would be an interim measure,” Hoggett said at the Friday hearing.

At the hearing, Hoggett admitted to writing an email to her personal assistant referring to the confidential documents relating to the Lendlease audit, which were retained in a locker at KPMG’s Sydney office.

Senator Deborah O’Neill – who grilled her on storing these confidential documents – said this “pivotal” email contradicted any denial around the sharing of confidential information.

In July, KPMG’s new CEO John Sams revealed that new evidence in the Allens investigation had substantiated one of the whistleblower’s allegations that client information relating to the Lendlease audit was retained in Hoggett’s locker at KPMG’s Sydney office.

In the same month, CA ANZ informed a parliamentary hearing that KPMG said it will provide investigation reports or reviews regarding the whistleblower allegations to CA ANZ, subject to a claim of legal professional privilege and the terms of a limited waiver agreement.

Hoggett and Rogers’ undertaking with CA ANZ will remain in place until at least six months after the conclusion of the ASIC investigation.

This decision by the disciplinary tribunal has taken effect immediately.

The tribunal is CA ANZ’s independent disciplinary body, constituted under the CA ANZ bylaws to determine professional conduct matters.