Loading...

Standard Bank sticks with KPMG, McKinsey and SAP

Oct 08 2017 06:00
Justin Brown And Lesetja Malope

Johannesburg - Standard Bank is continuing to use the services of three companies that are under public scrutiny, despite evidence that all of them have been involved in corruption.

“South Africans are, rightly, very concerned by the evidence of serious and widespread corruption in our country,” the bank said, adding that auditing firm KPMG had taken insufficient action to restore its reputation.

“Guided by the SA Reserve Bank, we are concerned to prevent systemic risks to the stability of the financial system that might arise from replacing a large financial services group’s auditors without a carefully planned transition,” the bank added.

Regarding management consulting firm McKinsey, the bank said it was “gravely concerned about allegations” levelled at the company, arising from its dealings with Gupta-linked firm Trillian, as well as Eskom and Transnet. And, said the bank, it was aware of the allegations that software corporation SAP made an improper payment to secure a contract with Transnet.

Standard Bank added that it would make a decision regarding its relationships with McKinsey and SAP.

KPMG stands to lose a significant portion of its business in the country if the government blacklists it from all state-related work. According to responses submitted to Parliament, which City Press is in possession of, the auditing company had 3 948 government-related projects over the past three years. This work earned it R1.732bn, including VAT, which equates to an average of R577m in annual fees.

Last month, Finance Minister Malusi Gigaba called on government and state entities to review all work that KPMG had done.

National Treasury spokesperson Mayihlome Tshwete said it was up to each department and state-related client of KPMG to make its own decision about retaining the firm’s services.

At least eight private sector KPMG clients have dropped the auditor.

And this week, Bloomberg reported that KPMG’s unit in Botswana was being sued by the liquidator of a failed bank.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

Read Fin24's top stories trending on Twitter:

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

sap  |  mckinsey  |  kpmg  |  standard bank  |  corruption

NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
1 comment
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're talking about: MINI BUDGET

Finance Minister Malusi Gigaba's first budget speech will be a balancing act on more than just the numbers level.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

New SAA board now has an aviation expert

Previous results · Suggest a vote

Loading...