Government cancels auditing contracts with KPMG and Nkonki Inc

Esequiel Farfan
Abril 17, 2018

The Auditor General of South Africa has terminated contracts with embattled audit firms KPMG and Nkonki with immediate effect.

The audit giant had been implicated in the scandal that led to the collapse of storied London public relations firm Bell Pottinger in September.

In a statement released on Tuesday (17 April), Makwetu said that recent media reports relating to the external audit of VBS Mutual Bank and the conduct of KPMG audit partners are some of the reasons that prompted the decision to withdraw all KPMG audit mandates with immediate effect.

Auditor General Kimi Makwetu says the overall credibility of the accounting profession in South Africa is in the gutter.

More news: Exxon Mobil Corporation (XOM) Emphasize Moves in Focus After Margin Ratio Analysis

KPMG later apologised for its work and cleared out its senior management. Two KPMG partners quit in the wake of the audit after facing disciplinary proceedings for not disclosing financial interests related to the bank.

Last year, he announced he would continue to secure the services of KPMG SA, limited to the audits that were already allocated to the firm at the time while waiting for investigations to conclude. We will - in the months ahead - keep the AG closely apprised of all the changes we are making to further embed our quality and integrity in all that we do.

A spokesperson for the CIPC said that criminal complaints against the three companies were filed with South African police towards the end of previous year, for contravention of the country's Companies Act.

Otros informes por

Discuta este artículo

SIGUE NUESTRO PERIÓDICO