Fraudulent activities continue to be identified inside enterprises audited and advised by KPMG. Picture: REUTERS

JOHANNESBURG - KPMG Botswana has rejected allegations of mismanagement after being accused of overseeing what could possibly be the "biggest accounting scandal in the history of Botswana."

A Botswana Sunday paper, this week, published an allegation made by liquidator, John Little, of Kingdom Bank Africa (KBAL) who accused the auditing giant of misconduct by continuing to sign off its books even after the collapse of the bank two years ago. 

Little has since filled a lawsuit of close to R262m against the company on behalf of creditors. 

To read more on that story, click here.


Speaking exclusively to Business Report, KPMG Botswana did not deny auditing Kingdom Bank of Africa (KBAL) up to the financial year that ended on December 31 2013; further stating that KBAL signed the opinion on the Annual Financial Statements to 31 December 2013 in September 2014.

 

"As at 31 December 2013, KBAL was solvent and in our view had sufficient reserves to carry it through for at least 12 months whilst it undertook a restructuring process which included finding new investors for the Bank. The going concern issues and the required restructure were disclosed in the financial statements at 31 December 2013," Nqubeko Sibiya of KPMG said. 


However, the lawsuit filed by Little on behalf of KBAL states that KBAL continued trading until 2014 despite its insolvency back in 2010 due to KPMG falsely reporting that the bank was solvent, "further incorrectly signing KBAL off as a concern."

 

KPMG responded b saying that it would "robustly defend the claim" of summons issued against it, in its capacity as External Auditor, by KBAL for the recovery of all losses suffered by the creditors (depositors).

 

- BUSINESS REPORT ONLINE