Nedbank Group to continue relationship with KPMG

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Nedbank Group says it plans to continue its relationship with KPMG South Africa as their joint external auditors.  The group says this resolution will be considered for approval by shareholders at an annual general meeting next week.

This comes as Barclays Africa decided to cut ties with the embattled audit firm. Nedbank says their decision follows a resolution by parent company Old Mutual to reappoint KPMG as auditors.

A number of companies have cut ties with KPMG, including African Rainbow Minerals, SASFIN and consumer goods group AVI. The Auditor General recently announced that his office would no longer be doing business with KPMG.

Barclays Africa’s board had at an earlier annual general meeting proposed that KPMG be re-appointed as auditors, but has since back-tracked on this decision. KPMG released a statement saying it is disappointed, but fully accepts Barclays decision.

The firm has been on a clean-up campaign to rebuild its credibility following scandals involving audits for Gupta linked businesses and the so-called rogue unit report at the South African Revenue Service.

KPMG has also been accused of improper conduct at VBS Mutual Bank which was recently placed under curatorship.