KPMG launches large-scale review to regain public trust
JOHANNESBURG - KPMG South Africa announced that it would be launching a review of all work done by its partners over the last 18 months.
KPMG chairperson, Wiseman Nkuhlu on Sunday told reporters that the auditing firm will launch an "unprecedented" review in order to attempt to regain public trust.
"This is being done in an effort to ensure that nothing comes back to bite us following the challenges of integrity we have experienced in the past," Nkuhlu said.
On Saturday, two former KPMG partners - Sipho Malaba and Dumi Tshuma - tendered their resignations with immediate effect when faced with disciplinary charges brought against them.
Top management at the auditing firm said it was deeply disappointed by the conduct of two its former officials. Their resignations, tendered on Friday, had been accepted, KPMG confirmed in a statement issued on Saturday.
"Both cases are conduct charges connected to VBS [Mutual] Bank and include, but are not limited to, failure by the partners to comply with the firm’s policies and procedures regarding the disclosure of relevant financial interests," the firm said.
Addressing reporters, KPMG South Africa CEO Nhlamu Dlomu, told reporters that the company had lost less than 10 percent of its client's book in the wake of auditing scandals.
The firm confirmed that the two partners who resigned were also auditing some big banks but Dlomu would not share which banks those were.
KPMG currently audits the books of Investec, Barclays Africa, Standard Bank and Nedbank.
"We are confident about the work we have done for other Banks," Dlomu said.
"We have been transparent to our existing clients regarding what has been happening in the firm."
- BUSINESS REPORT ONLINE