CAPE TOWN - CAPE TOWN - Gauteng has requested legal advice on whether to review contracts undertaken by KPMG.
This was revealed in a Gauteng legislature written reply by Gauteng Provincial Treasury MEC Barbara Creecy on October 27.
Notably, Gauteng has made payments to KPMG worth over R4 million since 2013 for audit-related contracts, Creecy explained.
The legal advice comes after a number of companies and organisations have abandoned the auditor.
These entities have cut ties with the firm, following an investigation which revealed illicit practices with the work it conducted for the Gupta’s and the South African Revenue Service (Sars).
Creecy was asked whether treasury will continue to make use of KPMG or a consortium where KPMG is a member.
"The Gauteng provincial government, subject to a legal opinion which is being sought, will determine a position on whether to review contracts undertaken by KPMG”, responded Creecy.
Following KPMG’s internal investigation, the Independent Regulatory Board for Auditors is now conducting an independent investigation into the auditor’s work for Linkway Trading - a Gupta related company.
WE ARE LEAVING
To date, 13 entities have cut ties with the embattled firm. Yet, KPMG is confident that most of its clients will remain loyal to them.
KPMG SA CEO Nhlamu Dlomu reportedly told a local media house that the majority of their clients were sticking with the firm.
“But they have asked questions to ensure they are happy with our quality. It takes a lot of time to build the relationship [with a client]. Each and every client of ours matters to us”, said Dlomu.
Dlomo reportedly expressed their focus on retaining clients.
“If we are to retain jobs, we must retain our clients”, she said.
The list of some of the entities who have either suspended or cut ties with the firm include AVI, Telkom, Sygnia Asset Management and Business Leadership SA.
In addition to this, the South African Reserve Bank (Sarb) said the country’s banks reserved the right to review their relationship with the firm.
The firm further faced a direct blow as InterWaste replaced the firm with fellow rivals, Deloitte.
- BUSINESS REPORT ONLINE