{"id":871974,"date":"2026-08-28T22:54:13","date_gmt":"2026-08-28T22:54:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/871974\/"},"modified":"2026-08-28T22:54:13","modified_gmt":"2026-08-28T22:54:13","slug":"allegations-in-documents-former-kpmg-partner-made-unwanted-sexual-advances-to-clients-and-staff","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/871974\/","title":{"rendered":"Allegations in documents former KPMG partner made &#8216;unwanted sexual advances&#8217; to clients and staff"},"content":{"rendered":"<p class=\"paragraph_paragraph___QITb\">Former KPMG partner Philip Henry allegedly treated &#8220;female members of staff and clients inappropriately&#8221;, including making &#8220;unwanted sexual advances&#8221; during his tenure, according to allegations from a whistleblower detailed in a letter tabled in federal parliament.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Philip Henry worked at the firm until his publicly reported departure in 2004 and is also accused in the document of allegedly receiving &#8220;secret commissions&#8221; that were paid &#8220;in cash&#8221; by a client after he devised tax schemes for them.<\/p>\n<p class=\"paragraph_paragraph___QITb\">In other instances, the document alleges, he received personal gifts from some clients instead of being paid in fees, or to reduce the fees.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The allegations have surfaced as part of a parliamentary inquiry looking at the KPMG audit leaks scandal engulfing the firm.\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">The latest allegations are detailed in a letter from a whistleblower to KPMG on August 30 2023, which was tabled in redacted form earlier this month by the inquiry.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-08-14\/macquarie-westpac-dexus-optus-grilled-kpmg-audit-leaks-inquiry\/107034656\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Firms raise doubts about KPMG&#8217;s integrity<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">In the wake of the KPMG audit leak scandal, executives from Macquarie, Westpac, Optus and Dexus cast doubt on their faith in the auditor.\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">The inquiry is investigating how KPMG audit partners allegedly misused client data and then mishandled a whistleblower&#8217;s complaint about it.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The inquiry has since heard from other whistleblowers at KPMG and other big four firms.<\/p>\n<p class=\"paragraph_paragraph___QITb\">ABC News has also reported on separate allegations against Chris Jordan, a former KPMG partner who went on to lead the Australian Taxation Office (ATO) for more than a decade. A 2021 document from a whistleblower alleged that Mr Jordan <a class=\"Link_link__kR0xA Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2026-08-25\/whistleblower-alleges-chris-jordan-avoided-paying-tax-kpmg\/107063824\" data-component=\"Link\" data-uri=\"coremedia:\/\/article\/107063824\" rel=\"nofollow noopener\" target=\"_blank\">avoided paying tax during his time at the firm<\/a> and that it was &#8220;corruption at the highest level&#8221; that he was appointed to lead the ATO.\u00a0<\/p>\n<p><img decoding=\"async\" alt=\"A blue document marked confidential with black sections covering text\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/08\/b254967992c0d6e63e3c9e9b28023a85.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">A redacted version of the KPMG whistleblower documents tabled in parliament. (ABC News: Parliament of Australia)<\/p>\n<p>Documents allege secret cash payments<\/p>\n<p class=\"paragraph_paragraph___QITb\">The 2023 whistleblower letter largely focuses on allegations against Mr Henry that date back to his time at the firm.\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">The letter alleges that during his time at the firm Mr Henry received secret commissions in cash &#8220;for facilitating clients&#8217; participation in a taxation arrangement&#8221;.<\/p>\n<p>&#8220;[Name redacted] was selling tax losses which Philip Henry knew to be non-existent or materially deficient and also knew that [redacted] had not filed income tax returns for more than 25 years,&#8221;  the letter said.Do you know more?<\/p>\n<p class=\"paragraph_paragraph___QITb\">If you have more information about this story, please contact Nassim Khadem at <a class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2026-08-29\/documents-with-new-allegations-against-former-kpmg-partner\/mailto:khadem.nassim@abc.net.au\" data-component=\"Link\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">khadem.nassim@abc.net.au<\/a> or <a class=\"Link_link__5eL5m ScreenReaderOnly_srLinkHint__OysWz Link_showVisited__C1Fea Link_showFocus__ALyv2\" href=\"https:\/\/www.abc.net.au\/news\/2026-08-29\/documents-with-new-allegations-against-former-kpmg-partner\/mailto:nassimkhadem@protonmail.com\" data-component=\"Link\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">nassimkhadem@protonmail.com<\/a><\/p>\n<p class=\"paragraph_paragraph___QITb\">In the letter, the whistleblower blames Mr Henry for wrongdoing for which she was held responsible, including being pursued by tax authorities.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-08-25\/whistleblower-alleges-chris-jordan-avoided-paying-tax-kpmg\/107063824\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Former ATO boss accused <\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Former tax commissioner Chris Jordan is accused of receiving &#8220;secret commissions&#8221; during his time at KPMG in the 1990s, according to documents seen by the ABC.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The letter also refers to a recording that the whistleblower claimed contained references to &#8220;destruction of evidence&#8221; in an ATO investigation that targeted the whistleblower.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The ABC is not suggesting the claims in the whistleblower&#8217;s letter are true, only that they have been made.<\/p>\n<p class=\"paragraph_paragraph___QITb\">Mr Henry has been contacted for comment.\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">KPMG later paid a whistleblower a settlement of more than $500,000 for legal costs.<\/p>\n<p>Allegations in letter Mr Henry &#8216;made unwanted sexual advances&#8217;<\/p>\n<p class=\"paragraph_paragraph___QITb\">The whistleblower&#8217;s letter alleges Mr Henry, &#8220;whilst a partner of KPMG, conducted himself in an unacceptable and reprehensible manner towards female members of staff and clients&#8221;.<\/p>\n<p>&#8220;Such behaviour was clearly outside KPMG&#8217;s code of conduct,&#8221;  the letter said.<a href=\"https:\/\/www.abc.net.au\/news\/2020-08-26\/amp-sex-harassment-whistleblower-bullied-victimised-and-silenced\/12597808\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Parliament hears new AMP harassment allegations<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">A junior female employee turned whistleblower alleges she suffered repeated sexual harassment at the hands of two men at the company.<\/p>\n<p class=\"paragraph_paragraph___QITb\">It went on to claim that his behaviour included &#8220;making inappropriate remarks to female members of staff and clients of an unacceptable sexual nature&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">It also included &#8220;bullying and intimidating&#8221; a whistleblower to &#8220;act outside the scope of her employment contract&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">This was a matter &#8220;regarding a significant legal action against KPMG by the Attorney General&#8221; at the time &#8220;which could have made the firm insolvent&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The document tabled suggests Mr Henry also allegedly made &#8220;unwanted sexual advances to female members of staff and clients&#8221; and borrowed &#8220;significant amounts of money from staff&#8221;.<\/p>\n<p>Allegations of &#8216;misappropriation of funds&#8217; in document<\/p>\n<p class=\"paragraph_paragraph___QITb\">The document alleges Mr Henry and several others named in the letter that have been redacted &#8220;used significant KPMG firm resources for personal matters and the affairs of associates for no financial benefit to the firm&#8221;.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-07-01\/post-kpmg-scandal-government-to-consider-audit-consulting-split\/106862504\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">Accounting firms could be split post KPMG scandal <\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Accounting firms could be asked to split their lucrative consulting services from their audit functions, under a shake up of the industry being consulted on by the federal government.<\/p>\n<p>&#8220;The annual loss to KPMG is estimated to be $100,000,&#8221;  the letter said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The letter also alleges Mr Henry was &#8220;offsetting client fees for personal benefits and gifts&#8221; that he received from clients.<\/p>\n<p class=\"paragraph_paragraph___QITb\">This included a new garage door in February 1994, painting of his private residence in 1989, as well as a Maxima sedan.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The car was allegedly gifted &#8220;in lieu of professional fees&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">It also alleges &#8220;misuse&#8221; of a &#8220;client trust account administered by KPMG for personal tax benefit without client consent&#8221;, and &#8220;misappropriation of funds from client trust accounts&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">This includes one case where &#8220;Philip Henry arranged for the funds to be used for the purchase of a jet ski&#8221; for personal use.<\/p>\n<p>Whistleblower alleges she was &#8216;wrongfully&#8217; implicated<\/p>\n<p class=\"paragraph_paragraph___QITb\">The letter alleges &#8220;Philip Henry lied to the Australian Taxation Office and the Australian Federal Police in relation to matters undertaken by him whilst a partner of KPMG&#8221;, with the &#8220;intention of diverting attention away from his own actions&#8221;.<\/p>\n<p><a href=\"https:\/\/www.abc.net.au\/news\/2026-06-23\/kpmg-chair-resigns-amid-whistleblower-fallout\/106831288\" data-component=\"FullBleedLink\" class=\"RelatedCard_link__rsgR9 FullBleedLink_root__lTw_U interactive_focusContext__yRhc_ interactive_defaults__AKxUU FullBleedLink_showVisited__g3Xvz\" rel=\"nofollow noopener\" target=\"_blank\">KPMG boss quits<\/a><\/p>\n<p class=\"Typography_base__sj2RP RelatedCard_synopsis__cFwMW Typography_sizeMobile14__u7TGe Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">KPMG chair Martin Sheppard and two audit partners are leaving the accounting and consulting giant in the wake of a scandal over misuse of confidential client information and the alleged mistreatment of a whistleblower.<\/p>\n<p class=\"paragraph_paragraph___QITb\">This was allegedly done to &#8220;wrongfully implicate&#8221; a whistleblower and was &#8220;both unconscionable and criminal&#8221;, the letter said.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The letter also refers to a recording that the whistleblower claimed contained references to &#8220;destruction of evidence&#8221; in an ATO investigation that targeted the whistleblower.<\/p>\n<p class=\"paragraph_paragraph___QITb\">An ATO spokesman told ABC News the agency was &#8220;unable to comment due to our obligations under taxpayer confidentiality laws&#8221;.<\/p>\n<p>Letter claims &#8216;falsified election results&#8217; at KPMG\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">The letter also alleges &#8220;falsified KPMG election results&#8221; of the NSW managing partner decision in 1997.<\/p>\n<p class=\"paragraph_paragraph___QITb\">It also claims there was &#8220;accumulated earnings in a foreign jurisdiction of an Australian resident client of KPMG&#8221; and money was &#8220;illegally&#8221; transported in cash across international borders to avoid the ATO knowing.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The names are then redacted but it notes that the funds were &#8220;physically carried from Singapore to Australia in hand luggage of the spouse of a KPMG partner to avoid Australian taxation&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">KPMG declined to comment.\u00a0<\/p>\n<p><img decoding=\"async\" alt=\"Two middle-aged men wearing suits and ties sit in a parliamentary hearing room.\" class=\"Image_image__5tFYM ContentImage_image__DQ_cq\"  src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/08\/ec4ba11eb267f4450053872cfc5b3125.jpeg\" loading=\"lazy\" data-component=\"Image\" data-lazy=\"true\"\/><\/p>\n<p class=\"Typography_base__sj2RP FigureCaption_text__zDxQ5 Typography_sizeMobile12__w_FPC Typography_lineHeightMobile20___U7Vr Typography_regular__WeIG6 Typography_colourInherit__dfnUx\" data-component=\"Typography\">Former KPMG chairman Martin Sheppard (left) and CEO Andrew Yates (right) at a KPMG hearing in Canberra. (ABC News: Matt Roberts)<\/p>\n<p class=\"paragraph_paragraph___QITb\">At a recent parliamentary hearing relating to the KPMG audit leaks scandal, KPMG&#8217;s former chairman Martin Sheppard and former chief executive Andrew Yates were asked about the $500,000 settlement.\u00a0<\/p>\n<p class=\"paragraph_paragraph___QITb\">KPMG investigated the allegations made in the whistleblower&#8217;s letter but was unable to substantiate them as they were &#8220;very historic&#8221;.<\/p>\n<p class=\"paragraph_paragraph___QITb\">The inquiry is expected to hold its next public hearing on September 4 in Sydney.<\/p>\n","protected":false},"excerpt":{"rendered":"Former KPMG partner Philip Henry allegedly treated &#8220;female members of staff and clients inappropriately&#8221;, including making &#8220;unwanted sexual&hellip;\n","protected":false},"author":2,"featured_media":871975,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[17170,64,440551,63,48797,103690,440548,440549,347748,44,440550,440552,73495],"class_list":["post-871974","post","type-post","status-publish","format-standard","has-post-thumbnail","category-australia","tag-ato","tag-au","tag-audit-leaks","tag-australia","tag-big-four-accounting-firms","tag-kpmg","tag-kpmg-inquiry","tag-kpmg-partner","tag-kpmg-whistleblower","tag-news","tag-philip-henry","tag-tax-aviodance","tag-whistleblower"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/871974","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=871974"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/871974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/871975"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=871974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=871974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=871974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}