KPMG Australia has appointed Michael Ebeid AM as its first Independent Chairman, unveiling the move as the cornerstone of a broader governance overhaul aimed at rebuilding trust after months of ethics and governance scandals, according to the official media release by The Greens.
The announcement comes just hours after the Parliamentary Joint Committee on Corporations and Financial Services published an email from Ebeid that it said raised questions about his suitability to lead the firm's reform programme.
The committee said the correspondence provides insight into his views on whistleblower allegations and governance failures that have been under parliamentary scrutiny, adding that its publication was in the public interest given his new leadership role.
As reported by the firm, Ebeid's appointment forms part of KPMG Australia's recently launched Action Plan, which commits the firm to strengthening governance, improving accountability and restoring confidence following controversies involving confidential client information, audit independence, the use of artificial intelligence in internal examinations and its handling of a whistleblower.
Action plan
As part of its governance reforms, KPMG Australia has committed to:
Appointing Michael Ebeid as its first Independent Chairman, subject to partner approval and partnership agreement changes.
Reshaping the KPMG Australia Board with equal representation from independent members and partners to strengthen oversight and accountability.
Adding independent oversight to the CEO appointment process through an independent selection panel supported by executive search firms.
Strengthening whistleblower policies and protections, including clearer reporting procedures and firm-wide whistleblower training.
Reviewing ethics, independence and confidentiality policies to reduce conflicts of interest and strengthen professional standards.
Improving audit quality controls and reinforcing confidentiality obligations across the firm.
Commissioning independent external reviews into whistleblower handling, governance, ethics and organisational culture, while publishing progress updates on the reforms.
Chair outlines priorities
Ebeid said he accepted the role because he believed the firm could recover from its recent challenges.
"I have agreed to take on this role because I believe in and respect KPMG. Despite the challenges the firm is facing, my resolve to support its important work is even stronger. I believe KPMG can recover, rebuild and emerge a better firm."
He said his immediate focus would be strengthening governance and restoring confidence.
"My mandate is to strengthen independent oversight, make integrity central to everything we do, and drive the cultural and governance reforms needed to build confidence."
"My first priority is to restore the governance and effectiveness of the Board. We will reshape the KPMG Australia Board with equal independent and partner representation."
Ebeid also confirmed the firm was accelerating the search for a new chief executive.
"We are adding an independent selection panel, and working with external agencies, including Riverstone Associates and Korn Ferry, on executive succession. I expect the Board to confirm the new CEO before the end of July."
"The new CEO appointment is a critical next step.
"KPMG Australia needs leadership with the judgement, courage and integrity to restore confidence and deliver lasting change. The incoming CEO will have a clear mandate to refresh the executive team where required and put in place the leadership needed to deliver sustained change."
Parliament raises concerns
Despite the firm's reform plans, the Parliamentary Joint Committee questioned whether Ebeid was the right person to lead the governance reset.
The committee said the published email reflected his views on the whistleblower's allegations of serious misconduct and governance failures and would help inform public debate about KPMG's efforts to rebuild trust.
It also noted that none of its members, including the committee chair, had met or communicated with Ebeid since the whistleblower allegations were raised in the Senate.
Greens unconvinced
The Australian Greens argued that appointing an existing board member as independent chair undermined the credibility of KPMG's governance reforms.
Greens finance and public service spokesperson Senator Barbara Pocock said the published correspondence raised concerns about Ebeid's attitude towards whistleblowers and parliamentary oversight.
"Mr Ebeid's letter shows his lack of respect for whistleblowers and the Parliament. His words reveal his willingness to attempt to exercise inappropriate influence on senators and committee processes. They also indicate his depth of knowledge and pre-formed views about events within KPMG and its whistleblowers allegations."
She questioned whether the appointment represented genuine independence.
"Appointing Mr Ebeid to 'independent chair' at KPMG Australia is KPMG's version of a 'cleanup'. This is hard to take seriously. This is a clear conflict of interest. This looks a long way from independent."
Pocock also argued that the appointment risked preserving the culture behind the firm's recent controversies rather than driving meaningful reform.
"His appointment is a performative rather than a substantive 'clean up' of KPMG. This is a firm that has failed to meet its obligations in handling a whistleblower and it appears he was involved in that."
She added that the appointment failed to offer the fresh leadership needed to rebuild confidence.
"This is not the fresh start for KPMG that it attempts to be. Mr Ebeid is a part of the culture and leadership team where things have gone seriously wrong in KPMG."
"Appointing an existing board member with deep involvement in KPMG's recent issues as an 'independent' chair simply doesn't pass the pub test."
Trust under spotlight
KPMG's appointment of its first independent chair marks the firm's most significant governance reform to date, but the simultaneous release of Ebeid's email has intensified scrutiny of whether the changes will be enough to restore confidence.
With multiple independent reviews under way and a new chief executive expected to be appointed before the end of July, the firm's efforts to rebuild trust are likely to remain under close parliamentary and public scrutiny.