Port Elizabeth - The Nelson Mandela Bay (NMB) metro will phase out its current contract with auditing firm KPMG in line with a motion and subsequent resolution of a full sitting of the council.
"It was agreed that the recent ethical scandal surrounding KPMG is ground for concluding the metro's existing contract with the auditing firm," chairman of the council's public accounts committee Lance Grootboom said.
KPMG currently managed the metro's ethics hotline and its audit and risk plan. The NMB coalition government wanted to ensure that those companies with whom it had existing contracts were beyond reproach, he said.
"KPMG currently manages the city's audit plan and thus will need to hand this over to internal resources within the next three months.
"Corporate services, together with the internal audit directorate, in conjunction with KPMG, will draft an exit strategy document with detailed handover processes and time-frames. The municipal public accounts committee (MPAC) will on its end conduct an oversight function to ensure the exit strategy is developed within the said time-frames so that internal audit is properly capacitated.
"The coalition government is serious about rolling out an audit and risk plan that is robust and reliable and that will minimise all fiscal and financial risks that could compromise our city's finances. We are aware that this will require a responsible and comprehensive phasing out of the current contract in order not to compromise our internal risk controls," Grootboom said.