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Auditor General terminates KPMG contracts

The Auditor General of South Africa said on Tuesday that it will terminate all contracts with KPMG and Nkonki. The two controversial audit firms had a number of contracts with the AG, within the Public Sector specifically. In a statement, the Auditor General Kimi Makwetu said that he issued the terminations after concerns grew that the firms posed significant risks to the reputation of his office. Makwetu however also stressed that the terminations are not a judgement of the capabilities of individuals at the firms.

Late last week KPMG announced that two partners - Sipho Malaba and Dumi Tshuma - had tendered their resignations with immediate effect when faced with disciplinary charges brought against them. Their resignations had been accepted by the company said in a statement. "Both cases are conduct charges connected to VBS [Mutual] Bank and include, but are not limited to, failure by the partners to comply with the firm’s policies and procedures regarding the disclosure of relevant financial interests," it said.

When VBS Mutual Bank recently went into curatorship, information arose in relation to these partners that prompted KPMG to launch an independent investigation, conducted by law firm Bowmans. That investigation was ongoing and further action would be taken as appropriate. On Friday last week, Nkonki Network Firms also announced that Mitesh Patel has been removed as the chairperson of Nkonki Network Firms. Adding that he has also resigned as CEO of Nkonki Inc Sunninghill, following his alleged involvement with the Gupta family and the linked firm, Trillian. Patel was removed as the chairperson by the Nkonki National Executive of the Nkonki Network Firms. Nkonki is registered with the Independent Regulatory Board for Auditors (IRBA).

This follows a series of articles published by the Daily Maverick. "'Since the publication of the said articles by the Daily Maveric - Amabhungane – the National Executive of the Nkonki Network firms have engaged with Nkonki Inc Sunninghill on matter. The National Executive Committee views the allegations made against Nkonki Incorporated, Sunninghill and Patel, collectively referred to as “Nkonki Inc Sunninghill”, grave and unconscionable. The Nkonki Network firms are separate and independent legal entities to Nkonki Inc Sunninghill with no cross-ownership or directorship. The independently owned firms within," the company said in a statement.

Source: www.iol.co.za

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Auditor General terminates KPMG contracts

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