Don Manifold, the managing partner of EY in South Australia, is leaving after an investigation found breaches of the professional services firm’s code of conduct.

Sexual harassment allegation were not substantiated.

He will be replaced as South Australia managing partner senior auditor by Mark Phelps, head of the local assurance and risk practice.

The investigation, first reported last week in The Australian Financial Review, involved Manifold and a female staff member. They were both suspended.

EY chief executive Tony Johnson emailed staff today to tell them of the change.

“The thorough six-week investigation is complete,” he wrote.

“The allegations of victimisation, bullying and sexual harassment against Don Manifold were not substantiated.

“However, breaches of our code of conduct and internal policies were found. These breaches are taken seriously.

“The findings of the investigation in respect of the staff member will remain confidential.”

The EY investigation followed another breach of Code of Conduct at KPMG in Adelaide.

“KPMG fully investigated and promptly addressed the matter,” says KPMG CEO Gary Wingrove.

“The individual responsible no longer works for the firm.”

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