African Rainbow Minerals cut ties with KPMG

African Rainbow Minerals announced a decision to end its relationship with embattled auditing firm KPMG, citing governance and ethics compliance. File picture

African Rainbow Minerals announced a decision to end its relationship with embattled auditing firm KPMG, citing governance and ethics compliance. File picture

Published Oct 23, 2017

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Johannesburg - African Rainbow Minerals (ARM) on Monday, announced a decision to terminate its relationship with embattled auditing firm KPMG, citing governance and ethics compliance following "careful consideration".

"ARM has noted with concern the questions raised about KPMG’s governance and ethics compliance as well as allegations regarding the lawfulness of KPMG’s conduct," ARM said in a statement. 

"The ethics, governance and quality of the South African auditing firms have been globally respected for many years. It is extremely important that the behaviour and conduct of our auditing firms continues to justify the respect, trust and confidence that they have earned."

ARM is a South African diversified mining and minerals company that mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals (PGMs), copper, nickel and coal. 

ARM also produces manganese and chrome alloys, and has an investment in gold through its shareholding in Harmony. It is owned by South African billionaire Patrice Motsepe.

KPMG has been losing clients weekly since it withdrew its controversial report on a "rogue spy unit" within the South African Revenue Service (Sars), and also being implicated in covering money laundering in Gupta-owned businesses.

African News Agency

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