CAPE TOWN – How South African banks react to KPMG is up to them and will not be under instruction by the South African Reserve Bank (SARB).
SARB, on Friday, stated that they will draw on the Monetary Policy Committee briefing on September 21. Moreover, SARB went on to reiterate Governor Lesetja Kganyago’s statement.
The SARB’s only interest in KPMG comes from a public policy perspective. And this interest is based on the SARB’s responsibility to regulate banks in order to make create and keep stability within the financial sector.
One of the main responsibilities under the SARBS’s mandate is to engage with banks and auditing firms. This is to ensure financial stability and ensure there are no undue risks. “These engagements have taken place but at no point did the SARB instruct banks on how they should deal with KPMG,” the bank said.
Deputy Governor Francois Groepe then went on to say that “thoughtful leadership and restraint” needs to be in place at KPMG.
“The South African economy would be better served if further market concentration within the auditing and auxiliary professional services sector could be avoided.” Over the last month, KPMG has lost a number of clients including Sygnia Asset Management, Sasfin Wealth, and most recently Wits University.
A number of banks have decided to stay with KPMG, but they have called for an independent inquiry into all the work the auditing firm has done for the Gupta family.
These banks include Nedbank and Investec. KPMG CEO Nhlamu Dlomu then stated that KPMG would provide details of the investigation within October.
"The Inquiry will be fully independent and the panel will be led by two experienced senior counsels. The panel members, the scope of the inquiry, terms of reference and the estimated duration of the Inquiry will be announced on 12 October 2017," said Dlomu.
-BUSINESS REPORT ONLINE