"The thorough six-week investigation is complete. The allegations of victimisation, bullying and sexual harassment against Don Manifold were not substantiated," Mr Johnson said.

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

"Don fully co-operated with the investigation, accepted its findings and sought to resolve the matter quickly given the impact on his family. Don offered his resignation from the partnership, which I have accepted.

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

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Staff moves

Senior auditor Mark Phelps will now become the new Adelaide office managing partner.

Mr Phelps leads the firm's "Adelaide assurance and risk practice and is well-credentialled to do a great job as OMP", Mr Johnson said.


"He serves as an independent member on Adelaide Football Club's professional standards and integrity committee and volunteers on the board of Catherine House [a leader in the field of women's homelessness], Access2Place [a disability housing provider] and United Way SA."

The firm also announced other changes within the 200-strong Adelaide office.

Letter from EY CEO Tony Johnson to staff. Inset: Don Manifold. Source: Linkedin

"[M]ark will be supported by Linzi Carr, who will take on a whole of Adelaide office people partner role, and service line leaders Mark Stewart and Craig Whiteman, who with the entire partner group will drive exceptional client service in the market," Mr Johnson said.

"In addition, [transaction advisory services] partner Ben Bishop who commenced his career in the Adelaide office will transition back to Adelaide, from Canberra, over the coming months."

Mr Johnson ended the email by outlining what he expected of the partners and staff at his firm.

"My ask of all staff and partners is to recognise and reward positive behaviours and to call-out unacceptable behaviour whenever you see it; whether in the workplace or out of the workplace," My Johnson said.

"If you have been the victim of bullying or harassment or have been a witness to this behaviour you should contact the talent team [email], the EY ethics hotline or directly raise it with a partner.

"We have a zero tolerance approach to bullying and harassment of any kind and you have my assurance that any complaint will be investigated sensitively, objectively and thoroughly."

edmundtadros@afr.com.au