Business, Featured Article, South Africa

KPMG had not been sufficiently transparent with Wits

The University of Watersrand (Wits) has dropped the controversial American Audit company KPMG citing the lack of trust and transparency.

The University of Watersrand drops auditing firm KPMG

The company has been providing the internal auditing and risk management services to the university for years.

On Wednesday, the University issued a statement announcing that it has taken a decision not to renew its contract with KPMG for internal auditing and risk management services. The contracts runs out at the end of 2017 financial year and is not going to be renewed or negotiated further.

The University Vice-Chancellor, Adam Habib says the decision was taken after a meeting with KPMG and the council’s audit and risk committes.

“It was agreed that KPMG had not been sufficiently transparent and that it is hard to reconcile KPMG’s conclusion that no one did anything illegal when senior individuals have been dismissed.” The University Vice-Chancellor, Adam Habib said on the statement.

The University says the committees deliberated “long and hard” on the matter.

“The committees acknowledged that KPMG did take some actions, including releasing the CEO, COO and a number of senior partners to mitigate the reputational damage that it suffered as a result of its relationship with Gupta-associated companies and its complicity in the SARS (South African Revenue Service) report but felt that KPMG had not gone far enough,”

“Further, it was agreed that KPMG had not been sufficiently transparent and that it is hard to reconcile KPMG’s conclusion that no one did anything illegal, when senior individuals have been dismissed and the SARS report has been retracted,” said vice Chancellor Professor Adam Habib.

Yesterday, the African arm of Germany’s Munich Re dropped KPMG as its auditor.

This comes after a number of companies distancing themselves from KPMG following accounting firm entangled in a scandal involving the Gupta family.

Reports suggest that major banks received demands from big clients to drop KPMG (Recasts with Munich Re)

In a statement issued on Monday by Barclays Africa and Absa bank noted that it’s also continuously reconsider its position with embattled auditing firm KPMG South Africa as more information becomes available on some investigations and reviews that are currently underway.

This was after a report from the South African Reserve Bank (Sarb) over the weekend, telling the banks that they cannot fire KPMG because it might undermine financial stability despite the firm being entangled in a forensic report scandal.

 

Subscribe to our mailing list

* indicates required
Loading...