Westpac director claims board was unaware of KPMG allegations

Westpac board member Michael Ullmer testified before a parliamentary committee that the bank’s board was unaware of whistleblower allegations involving KPMG until they were read in parliament by Senator Deborah O’Neill in March.

Ullmer stated that the only prior warning was given to director Peter Nash, a former KPMG partner, who did not inform the rest of the board. Nash recently resigned following revelations of social contact with KPMG chairman Martin Sheppard during a tender process for a $25 million-a-year audit contract. Ullmer noted that while Westpac’s general counsel received a comprehensive explanation of the allegations in May, the information was initially presented as having been investigated and unsubstantiated.

The inquiry is part of a broader investigation into a scandal involving the misuse of confidential client information by KPMG. Other high-profile figures, including former RBA governor Glenn Stevens and Optus executives, are also expected to appear before the committee.