Jozef Imrich, name worthy of Kafka, has his finger on the pulse of any irony of interest and shares his findings to keep you in-the-know with the savviest trend setters and infomaniacs.
''I want to stay as close to the edge as I can without going over. Out on the edge you see all kinds of things you can't see from the center.''
-Kurt Vonnegut
Memories of my summer and winter holidays came flooding in as I dived into “Treasures of Nature: Poland.”
My father’s mum and family lived in a property on the hills of Pilhov and my dad’s best friend Janko Brunovský, my godfather, ran a Water - polu- Mill bellow the hills of Pilhov in Mnisek nad Popradom.
It was a place where I became good at cross country skiing in winter and in summer the streams of Poprad River tested my swimming skills …
Whatever you do do not mention smuggling to Krakow and Zakopane markets as the border between Czechoslovakia and Poland was like 1970s Casablanca where every one was shocked that the border guards accepted bribes …
POPRAD VALLEY
The Beskid Sadecki is exremely lucky with regard to rivers.
In the west, its border is marked by the Dunajec with its scenic gorge in the area of Krościenko and Tylmanowa. The picturesque Poprad gorge cuts the Beskid into two ranges: Radziejowa and Jaworzyna Krynicka.
After it passes the Slovak border, the course of the Poprad becomes more winding. Between Andrzejówka and Zegiestów, it forms bends which cut off two peninsulas, known as Kopata Polska and Lopata Stowacka.
Near Rytro the Poprad Gorge widens in the direction of Piwniczna.
The Poprad drainage basin comprises the most important natural resource of the Beskid Sadecki - very large and varied reserves of mineral waters, the largest in Poland as well as the whole Carpathians. They are used in the spas of Muszyna, Zegiestów Zdrój, Piwniczna Zdrój, Rytro - all on the Poprad.
The Poprad forms the axis of the vast Poprad Landscape Park, which covers both ranges of the Beskid Sadecki. In its many nature reserves it protects the remains of the pristine Carpathian forest (beeches, limes, yews, larches).
The book of “Treasures of Nature”
Describes Morske Oko Tarn as ‘Exe of Sea’ rather than ‘Eye of Sea’ …
Flock banned Benn Jordan from their recent convention (they even emailed his hotel to cancel his room) but, taking a page from law enforcement & Flock itself, he electronically surveilled the whole thing from outside, sniffing Wifi, Bluetooth, mics, etc.
Long past time to quit X. “Those who continue to post on X — in particular those X users who are not racist psychopaths — are enhancing the site’s usefulness to [Musk] as a propaganda tool by drawing more eyes to the platform… “
This week, we look at the good (new CEO), the bad (new chairman), and the ugly (lay-offs) following the parliamentary inquiry, along with some big promotion news.
Welcome to Professional Life, our free weekly newsletter covering the latest news, moves, and partner promotions for consulting and accounting experts. Sign up here to get it direct to your inbox every Wednesday before it appears online.
KPMG chief executive John Sams gets the tick of approval from (past and present) personnel, and the firm’s chairman and deputy chair defend their handling of the scandal. Plus: token maxing is out, token budgeting is in.
In this week’s issue:
New KPMG chief Sams gets a thumbs up
But Ebeid and Mortell are forced to defend themselves
This week’s lay-offs are just the first unpleasant task
We won an award, and reflections on covering this saga
AI and the professions: Token budgeting is the new focus
KPMG CEO John Sams strikes the right tone
New KPMG Australia chief executive John Sams answers questions at a parliamentary hearing in Canberra. Alex Ellinghausen
During the past fortnight I’ve spoken to a range of current and former KPMG personnel about the August 14 hearing to gauge their views.
The overwhelming consensus was relief at the performance of new chief executive John Samsand his willingness to be frank about the conduct at the heart of the audit leaks scandal and the scale of the cultural issues at the firm.
When he was asked by Labor member Tania Lawrence to comment on the irony “that KPMG has failed to be able to manage even the basics of the expectations of them to undertake auditing with confidentiality and trust”, Sams quickly responded: “There is not one part of me that is going to defend any of that conduct. It’s totally unacceptable.”
This followed his earlier comment: “We’ve clearly had some major failings here that we have to reflect on, and I’m not going to try and defend any of those because they’re indefensible, frankly.”
You could almost hear KPMG supporters swooning at a response that featured no downplaying, no mansplaining and no elliptical legalese.
He also didn’t take refuge in the common defence used by corporate leaders to downplay misconduct issues.
“We can’t go with the few bad apples line here,” said Sams. “We absolutely have to look at our culture.
“One thing that I took confidence from, though, in those forums that I’ve run with our staff face to face across six of our offices across the country, is that our staff were shocked and appalled by what they’ve learned through this process, as am I, and so I don’t believe that the behaviours that we’ve seen here are entirely pervasive across the organisation.
“I don’t believe they reflect the values of the vast majority of our people, and that’s why I think we’ve let them down so badly.”
Sams also took aim at the earlier fines issued to three partners who misused confidential Lendlease papers (“woefully inadequate”) and said that the sector needed “further regulation”.
“Well, it’s our responsibility to do the right thing,” he said.
“I would never abscond that. But when wrongdoing is done, I absolutely agree ... that there needs to be stronger regulation around that.”
KPMG deputy chairman Carmel Mortell and chairman Michael Ebeid. Alex Ellinghausen
Sitting next to Sams on the day was newly confirmed KPMG chairman Michael Ebeid,whose testimony was received with scepticism.
Ebeid apologised and said he took full responsibility for KPMG’s earlier failed investigation of the claims, but then said that he was best placed to fix the problems.
The chairman had to again apologise for privately criticising senator Deborah O’Neill following her initial disclosure of the whistleblower’s allegations in March.
“I should have pushed harder in asking for those reports in hindsight, but I didn’t, and I have to take responsibility for that,” said Ebeid.
“I didn’t push as hard as I should have, but I did ask for them, in the same way that I know what I asked for. I know what I pushed on things like legal whistleblowers protections, et cetera.”
He then added that “when the opportunity came for me to step into this chair role, I thought I could make a difference, knowing what I know today, knowing where the firm’s shortcomings were, knowing where the weaknesses are in the firm’s governance”.
Liberal National Party Senator Paul Scarr was scathing of Ebeid’s testimony and logic in taking on the chairman role.
“Didn’t it occur to you, or wasn’t there an internal voice saying to you, ‘Gee, I think it might be better if KPMG can just turn a fresh leaf. And I sat on this subcommittee ... which failed to discover the truth’.”
Scarr continued: “Doesn’t any part of you recognise that a lot of people would be watching this and saying, ‘What are you doing? Why are you putting yourself in this position of independent chair?’
“Wouldn’t it be in KPMG’s best interest for you to step away, maybe just serving an interim basis, but to step away and give them an opportunity to have a fresh start?”
Ebeid kind of answered the question. He started his response by noting saying he had “reflected a lot on that question” and that he had joined the subcommittee “17 months into a long, protracted, complex issue”.
“ ... It was 11 weeks from when I joined to when Allens delivered their [December] report ... I barely had found my voice on the committee ... I was still working out who’s who and how things worked in a firm, which was very foreign to me,” he said.
The new chairman then noted that in the past two months he had learnt “a lot about where governance failures are letting the firm down, and I actually thought long and hard because I could have run for the hills, and it would have been so much easier for me, so much easier”.
Helping Ebeid’s decision to stick around? A $1 million annual pay cheque that is double that of PwC independent chairman John Green.
Next to Ebeid at the inquiry was deputy chairman Carmel Mortell, the partner in charge of the board subcommittee.
She also admitted to mistakes, but then said she had relied on advice from the firm’s external lawyers. She also took aim at the partners involved in the data misuse for lying.
Scarr asked her why she had not challenged the decision of legal firm Allens to not search emails in the December Project Magenta report.
Mortell replied: “I do want to say that I am extremely apologetic that we didn’t do that. In hindsight, and maybe in any view, that that was a reasonable step to take at the time.
“And I do apologise sincerely to the whistleblower that that extended the grief and the anguish to them throughout that time.”
Mortell then added that the subcommittee “had accepted their [Allens’] advice that it was reasonable and proportionate at the time”.
The immediate future for Sams is a series of unpleasant tasks.
On Monday, he announced KPMG would slash 5 per cent of its workforce and cut partner pay by 13 per cent as part of the first stage of a cost-cutting program triggered by the document-misuse scandal that is affecting future sales.
The big four accounting firm said the cuts would include 27 partners and 360 staff, after it reported that annual revenue for the year to June 30 fell 1 per cent to $2.1 billion.
Consulting revenue dropped, but this was offset by growth in the audit, tax and legal divisions.
Average partner pay will also be cut by 13 per cent, or about $72,000, to $645,000.
These initial job cuts are part of the continuing internal review known as Project Vector, and part of reductions that could eventually affect as many as 1000 employees.
Further cuts are expected after the firm completes mandatory discussions with employees in award-based roles. In addition, cuts in the firm’s core audit division are expected after the busiest time of the year ends in late August.
Many also want Sams to get rid of other executives linked to the botched response. Most commonly mentioned are Ebeid and Mortell.
It is also hard to see how the firm can keep deputy general counsel James McClelland, the lawyer who almost cried as he apologised for “the nature” of his communication with the whistleblower.
McClelland said the messages (which Ebeid later said had a “level of aggression” that was particularly concerning) had been “sent on instructions on behalf of the firm”.
McClelland also said his work had been “fundamentally undermined” by partners misleading him during his initial investigation and limitations on the scope of the work.
Greens Senator Barbara Pocock will not re-contest the next election, citing personal reasons, AAP reports. The South Australian will step away from parliament when her first term expires in 2028. “The reasons are personal: for the past year my partner has had brain cancer and, despite his good prognosis, I’ve reached the view that running for a second term is not right for me,” she said. As well as advocating for the changes to negative gearing and the capital gains tax, Pocock has been a vocal critic of the scandal-plagued consulting firms KPMG and PwC.
Laws beefing up the power of the Tax Practitioners Board have passed in the House of Representatives. The rules were introduced to address issues raised by the PwC tax leaks scandal, and recommendations from an earlier review of the board. The Treasury Laws Amendment (Strengthening Accountability for Tax Adviser Misconduct and other Measures) Bill 2026 also introduces other changes, including to the foreign resident capital gains tax regime.
Finally, on a personal note, Hannah Woottonand I were named journalists of the year for our work on the KPMG audit leaks scandal at this year’s Kennedy Awards on Friday. We also took out the award in the business reporting category.
I was very (very!) surprised on the night to take out the top prize and used my short speech (Hannah is away at the moment) to thank the newsroom, the whistleblower, the politicians and my family. I should also have thanked the AFR lawyers and all the past and present KPMGers and other contacts who have spoken to us about the matter.
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There is a weight to covering the scandal – as there was with the PwC tax leaks matter – as it is very clear the disruption these matters cause to many hundreds (and thousands) of people not directly involved in the wrongdoing.
We think about that a lot at the paper, and constantly consider that against the public interest.
