Two More Firms Fire KPMG As Corporate South Africa Weighs Links With Auditor

www.oann.com | 9/15/2017 | Staff
SweetStuff33 (Posted by) Level 3
JOHANNESBURG (Reuters) – A South African broker and an energy investment firm fired KPMG on Tuesday, two of a host of local firms weighing whether to ditch the auditor to distance themselves from a scandal involving business friends of President Jacob Zuma.

Sasfin and Hulisani , both relatively small financial companies based in Johannesburg, announced they would drop KPMG [KPMG.UL] due to reputational risk.

KPMG - Names - Accounting - Leadership - Friday

KPMG, one of the biggest and most influential names in accounting, cleared out its South African leadership on Friday after it found that work done for firms owned by the Gupta family “fell considerably short” of its standards. It found no evidence of crimes or corruption, however.

“In view of the well-publicized concerns recently raised with regard to KPMG as well as Sasfin’s commitment to good governance in respect of auditor independence and auditor tenure, Sasfin has decided to put its audit out to tender,” the company said in a statement.

Hulisani - Shareholders - Decision - KPMG - PwC

Hulisani said it would ask shareholders to approve its decision to replace KPMG with PwC at a meeting next month. Fund manger Sygnia fired KPMG a month ago.

Several South African companies approached by Reuters over the last week, including blue chips Barclays Africa and Old Mutual , said they were considering cutting ties with KPMG.

Clients - Position - Audits - Standards - Gupta

“They’ve placed their clients in a difficult position. If their audits were not up to standards on the Gupta account, why should I believe they were up to standard on my account?,” Sygnia chief executive Magda Wierzycka told Reuters on Monday.

“What happens to KPMG from this point onwards really depends on what corporate South Africa does.”

Barclays - Africa - South - Africa - Lender

Barclays Africa, South Africa’s third largest lender by market value and one of KPMG’s biggest clients, has met the firm to request more information on its internal investigation before making a call on whether to sever ties.

“After carefully considering the...
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