KPMG dropped by ABSA parent Barclays Africa Group
CAPE TOWN - Barclays Africa Group announced on Thursday via a statement that it would be withdrawing its recommendation that auditing firm, KPMG Inc. be reappointed for 2018 at its upcoming Annual General Meeting (AGM) scheduled to happen on May 15 2018.
KPMG woes deepened earlier last month, after Auditor-General (A-G) Kimi Makwetu terminated government contracts with the firm as some of the country’s major banks said they were also reviewing their relationship with the embattled auditing group.
Makwetu said his office decided to cut ties with KPMG in the wake of the continuing fallout over the firm’s involvement in the VBS Mutual Bank auditing saga. He said his office had already limited KPMG’s work following the Gupta-owned Linkway scandal.
Barclays Africa's board wanted KPMG to be re-appointed as one of its external auditors for the 2018 financial year, but that it would “continue to monitor developments”.
"In the initial Notice of the AGM, the board proposed that KPMG be re-appointed as one of BAGL’s external auditors for the 2018 financial year, but that it would “continue to monitor developments” relating to KPMG"
"Subsequent to the release of our AGM Notice, the Board has carefully evaluated the ongoing and more recent developments and decided that it is no longer able to support the reappointment of KPMG", read the statement.
"The appointment of KPMG as external auditors of BAGL will cease on completion of the statutory and regulatory audit and reporting matters relating to the 2017 financial year, which is expected to take effect by approximately 31 May 2018.
KPMG South Africa said in a separate statement that it was disappointed by, but fully accepted, the decision.
"We are very proud of the work that we have performed for Barclays Africa Group over many years, and of the diligence and professionalism of the team who served them."
- BUSINESS REPORT ONLINE