Still reeling from a parliamentary bashing, after which its chairman and two partners quit the firm, KPMG is again in the firing line as questions are raised about its suitability to hold government contracts.
Greens senator Barbara Pocock has pointed out KPMG still holds a $1.27 million contract to train 300 top public servants in ethics and leadership.
The contract runs until December 2026, with a possible two-year extension.
"This is a firm that misused confidential client information to secure more work, misled the parliament and seriously mistreated whistleblowers - among other things," Senator Pocock said.
"Our most senior public sector leaders should not be undertaking any form of training - let alone on ethics and leadership - from a firm that has, by its own admission, breached the most basic ethical values and whose leadership has failed."
KPMG's national chairman Martin Sheppard will step down, along with audit partners Paul Rogers and Eileen Hoggett.
Mr Rogers and Ms Hoggett were named in 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 and alleged documents from Macquarie Group, Westpac, Dexus and Optus were also mishandled.
Mr Sheppard also received a roasting at the parliamentary hearing.
He was pressed on KPMG's initial refusal to hand over internal documents, citing confidentiality, professional privilege and the risk of prejudicing the administration of justice.
It was flagged the firm could be investigated for contempt before it later relented.
"The leadership and ethics of KPMG, exemplified by the recent scandals and evidenced by multiple resignations, is precisely the kind of leadership training we do not need in the public sector," Senator Pocock said.
"Not only did KPMG fail to learn from the awful lessons of the PwC debacle, it sought to present itself as the ethical alternative to secure lucrative contracts - including this one."
In 2023, PwC was found to have shared confidential federal government tax information with prospective clients.
It was banned from new contracts for more than a year and ended up selling its government advisory business for $1.
KPMG, which has 297 active federal contracts worth $653 million, allegedly misused confidential board papers to win new audit contracts and mistreated a whistleblower who raised concerns.
KPMG has yet to face any major penalty but is under a three-month moratorium on new finance department work.
The Greens want the leadership and ethics training contract cancelled and all of KPMG's federal contracts reviewed.
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