One of the biggest audit firms in the world, KPMG has been in the spotlight once again after a deal was reached between the company and liquidators of VBS Mutual Bank.
VBS Bank was placed under curatorship by the South African Reserve Bank (SARB) in March 2018 due to a severe liquidity crisis.
Advocate Terry Motau was later appointed to investigate the bank’s affairs, revealing in his findings that 53 individuals collectively received billions from VBS. Among them was a former KPMG partner, Sipho Malaba, who received R34 million.
KPMG, as the bank’s auditor, faced allegations of failing to prevent or expose the malfeasance.
KPMG faced serious backlash after the two parties involved reached an out-of-court settlement that was kept confidential.
Trade union, the Congress of South African Trade Unions (Cosatu).
In a statement, Cosatu said it, “Vehemently condemns the secrecy surrounding the out-of-court settlement reached between KPMG and the liquidators of VBS Mutual Bank.”
According to reports, the sum of R500-million was reached between the two parties.
The money will be paid to the liquidator to distribute among the creditors.