Adds chairman quotes, background in paragraphs 5-8, 9-10

By Renju Jose

SYDNEY, July 2 (Reuters) - KPMG Australia on Thursday named Michael Ebeid, the former boss of public service broadcaster SBS, as its first independent chairman, as the firm battles a scandal over whistleblower allegations that staff misused confidential information to win audit work.

The appointment comes a week after KPMG said its chairman and two senior partners would leave the firm following whistleblower allegations it misused confidential board papers from real estate company Lendlease LLC.AX to support bids for major audit tenders.

Andrew Yates, who joined the firm in 1990 and became CEO in 2021, and managing partner of audit and assurance Julian McPherson, resigned in May.

KPMG has admitted mishandling the complaint and launched a fourth investigation after three previous probes failed to substantiate wrongdoing.

"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," Ebeid said in a statement.

He said his mandate was to strengthen independent oversight, make integrity central to everything the firm does, and drive 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 added.

The new chairman said KPMG would accelerate its CEO appointment process, adding an independent selection panel and working with external agencies on executive succession. He said he expects the board to confirm a new CEO before the end of July.

Ebeid's appointment comes a day after Australia's centre-left Labor government said it was considering breaking up the Big Four accounting firms — Deloitte, EY, KPMG and PwC — and bringing them under the corporate regulator's purview following high-profile scandals in the sector.

The potential interventions broadly mirror recommendations from parliamentary inquiries triggered by PwC's 2023 tax leaks scandal, in which confidential government policy was shared to win clients. Most of those recommendations have yet to be implemented.