KPMG faces public sector work ban

KPMG could be banned from applying for Government contracts after a series of scandals.

The Big Four consultant was the third biggest winner of public contracts in the year to March after Deloitte and PwC, with £244m of work.

But in a letter to KPMG, the Cabinet Office warned of a ban if there is future misconduct.

It comes after a tribunal in October found KPMG lied about work it did for mattress firm Silentnight. It was fined £13m by the Financial Reporting Council over the scandal.

The letter outlined options, including a ban. The Cabinet Office said: ‘We have been in contact with KPMG following the publication of the tribunal report.’ KPMG also featured in scandals at Carillion and Co-op Bank. Chief executive Jon Holt said he took the letter ‘very seriously’.