JOHANNESBURG - JSE-listed financial services group Sasfin today announced it had ended its 18-year relationship with KPMG as the audit firm struggles to clean up its image after being tainted by Gupta links and its shoddy South African Revenue Services (Sars) report.
Sasfin said it will be changing its independent sponsor from KPMG Services to Deloitte & Touche Sponsor, effective as of Tuesday.
It said it made this decision to ensure a separation of the role of an external joint auditor to the Sasfin Holdings Limited Group with that of Independent Sponsor.
However, the company in a statement further said the decision to sever ties with KPMG was also informed by KPMG's recently battered reputation and standing in society.
“In view of the well-publicised concerns recently raised with regard to KPMG as well as Sasfin’s commitment to good governance in respect of auditor independence and auditor tenure, Sasfin has decided to put its audit out to tender,” the company said.
Safin said the tender process is expected to begin in November. The group has had KPMG. and Grant Thornton as joint auditors for 18 and 30 years respectively.
Earlier this year asset manager Sygnia became the first listed company to dump KPMG as allegations emerged that it had turned a blind eye to alleged money laundering activities of the notorious Gupta owned companies.
-BUSINESS REPORT ONLINE