Home

Auditor-General terminates contracts with KPMG and Nkonki Inc

Reading Time: < 1 minute

Auditor-General Kimi Makwetu has announced his office’s decision to terminate, with immediate effect, the auditing contracts with KPMG and Nkonki Inc.

The two companies had been doing public sector audits on behalf of the Auditor- General of South Africa.

The Auditor- General says 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.

And on that matters arising from the shareholder transactions involving  Nkonki Inc were of “grave concern and pose significant risk on the reputation of his office.”

KPMG has responded saying it hopes that the announcement is a temporary break in the relationship.

Just a few day ago, KPMG announced measures to strengthen its governance.

This after two of its audit partners, Sipho Malaba and Dumi Tshuma, resigned last week with immediate effect.

The two had been facing disciplinary charges related to work done for VBS Mutual Bank.

Nkonki Inc’s chief executive, Mitesh Patel, resigned last week after it was revealed that his R107 million management buyout’ of the black auditing firm 18 months ago was funded by Gupta family associate, Salim Essa.

Click video below:

Author

MOST READ