File Photo.
File Photo.
Picture: David Ritchie/ANA
Picture: David Ritchie/ANA
CAPE TOWN - Embattled auditing firm KPMG’s woes are far from over as telecommunications firm Telkom has joined the long list of companies that have opted to cut ties with KPMG.

An e-mail sent to Business Report by an internal source at Telkom yesterday reads: “Telkom has taken note of reports where allegations have been made against organisations offering services to Telkom.

“The recent media reports surrounding KPMG SA and allegations around the conduct of some of its employees have been met with great concern.

Telkom conducts a substantial amount of business with KPMG and has taken the events very seriously.

“We have engaged with our Telkom Group Board Audit Committee on this matter and the audit committee has decided that the Telkom Group will not award any new business to KPMG SA until the investigation by the Independent Regulatory Board for Auditors (Irba) has been concluded.”

The source revealed further: “Since the chairperson of KPMG International has announced that the company will be launching its own independent investigation into the work conducted by KPMG SA, Telkom took note of the intent of the investigation to address the allegations, enhance business transparency and rebuild trust with South Africa.

“We emphasise that the decision to withhold any further awarding of business to KPMG SA is subject to the outcome of the final investigation report by the Irba.”

The e-mail leaked to Business Report was distributed to Telkom employees from the group chief risk and compliance officer, Tsholofelo Molefe.

The source stated, however, that “any contracts and bodies of work already underway in the business with KMPG SA must still be completed and existing contracts will stand until their expiration dates.

In the interim, should the respective business areas need professional consulting or auditing services, the appointment of service providers will be made in accordance with our
procurement processes”.

Another internal source at Telkom recently revealed to Business Report that they were very concerned about EOH’s service offering to Telkom.

Business Report will continue our investigation into the matter in next few days

Adri Senekal de Wet is Executive Editor: Independent Media. Editor: Business Report & Personal Finance.

BUSINESS REPORT