KPMG stops bidding for government contracts

KPMG has stopped bidding for government work after it was threatened with a ban following a string of scandals.

The Cabinet Office recently said it would bar the accounting and consultancy giant from new contracts if there was any further misconduct at the group.

KPMG has temporarily stopped bidding for any tenders until the Cabinet Office finishes a review.

The British-Dutch professional services company was the thirdlargest winner of public-sector consulting contracts in the most recent financial year.

But a series of auditing scandals has shattered its reputation in recent years.

It was recently fined £13m for its role in the sale of bed maker Silentnight to private equity firm HIG Capital.

It has botched audits at M&C Saatchi and Ted Baker and resigned from its role at Fifa in 2016 after failing to notice bosses had secretly paid themselves £58m.

But the worst blow to its standing came from its audits of failed construction contractor Carillion, one of the UK’s biggest infrastructure firms by the time it collapsed under a debt mountain of £7bn in January 2018.

KPMG signed off on its accounts four months before it issued a profit warning – and nine months before it went into liquidation.

KPMG is still being investigated for its audits into Carillion, RollsRoyce and Conviviality.