File image: IOL.

CAPE TOWN - Redefine Properties announced that it has cut ties with embattled auditing firm, KPMG, joining a list of other companies who have quit the firm.

The property group is believed to be the latest company to drop the embattled firm. 

"JSE listed diversified Real Estate Investment Trust (REIT) Redefine Properties (JSE:RDF) has announced its decision to place auditors KPMG on notice. Redefine’s board has resolved to terminate its association with KPMG", said the statement. 

The group said that at its Annual General Meeting in February 2018, it was proposed that KPMG be re-appointed as the Company’s independent external auditors for the 2018 financial year. This was on the provision that “the Audit and Risk Committee actively monitor the outcomes of the investigations underway and take appropriate action as and when further information becomes available”.

However, after the AGM meeting, the board said it had evaluated the recent developments by KPMG. The property group reportedly added that it would begin with a tender process in order to appoint auditors to replace KPMG. 

“The Board and the Audit and Risk Committee remain satisfied with the real estate experience and technical expertise of KPMG and the designated audit partner and accordingly they will continue as auditors during the transition period to assist in a smooth and efficient handover to the new external auditors,” they said.

Redefine CEO, Andrew Konig said that the company's reputation remains a priority. “Redefine’s reputation is everything and our decision was made for this reason", said Konig. 

Meanwhile, the property group will now actively engage in finding a new auditing firm to replace KPMG. 

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- BUSINESS REPORT ONLINE