Sibanye-Stillwater announced that it would not reappoint KPMG as the company's auditor but would select a "new independent external" auditing firm. Picture: Reuters/Mike Hutchings

Johannesburg - Sibanye-Stillwater on Friday announced that it would not reappoint KPMG as the company's auditor but would select a "new independent external" auditing firm.

"Following the on-going and more recent VSB Bank developments regarding, the Sibanye-Stillwater Board wishes to advise shareholders that a process of selecting a new independent external audit firm for the Group, with respect to the financial year ending 31 December 2019, will commence following the AGM on 30 May 2018," the company said. 

"Shareholders will be kept informed of progress made in this regard."

In the statement, the company said the Notice of Annual General Meeting (AGM), issued to shareholders on March 29, contains an ordinary resolution proposing the re-appointment of KPMG as the group’s auditors, effective until the 2019 AGM. 

KPMG was not immediately available for comment.

In March, the troubled VBS Mutual Bank was placed under curatorship, South African Reserve Bank (SARB) governor Lesetja Kganyago reportedly announced.

SARB governor, Lesetja Kganyago and the Registrar of Banks Kuben Naidoo updated media on the bank’s liquidity crisis at the central bank’s headquarters in Pretoria.

“VBS experienced increasing liquidity challenges over the last 18 months. These problems emanated from a failure of the board of directors and executive management to manage the bank’s rapid growth and its funding and liquidity position,” he reportedly told journalists in Johannesburg.

This had resulted in VBS Mutual Bank being placed under intense regulatory scrutiny, EWN reported.

“The liquidity challenges emanated from the maturity of a large concentration of deposits from municipalities and was exacerbated by the termination of other sizable deposits and the inability to source sufficient funding timeously,” EWN quoted Kganyago as having said.

African News Agency/ANA