Share

KPMG replacement also drops Guptas

Cape Town - Auditing firm SizweNtsalubaGobodo (SNG) is the latest SA company to cut ties with Gupta-owned businesses. 

In a media statement on Tuesday SNG, the fifth largest accounting firm in southern Africa, said its board had taken a decision to resign as the auditors of Oakbay Resources and Energy Limited and its related entities. 

SNG took over as Oakbay’s auditors in April 2016, the month after KPMG SA resigned. They are also the auditors for state power utility Eskom. 

“The board took this decision after a thorough assessment of its relationship with the company which has spanned a period of 18 months. This decision has been communicated to Oakbay,” read the statement. 

High professional standard

SNG said that its board was “satisfied that SNG have carried out their responsibilities in accordance with the Audit Professions Act”. 

“Further, SNG are committed to continue upholding its high professional standards as regulated by the Independent Regulatory Board of Auditors.  SNG are precluded in terms of their professional obligations of confidentiality from discussing the affairs of clients on public platforms,” it said. 

The statement did not give any specific reasons for dropping the Okaybay contract, apart from one sentence saying it had to do with new developments. 

SNG noted that, when it took over the contract from KPMG in April 2016 it contacted "the outgoing auditor in order to establish whether there were any professional reasons why it would not be appropriate to accept the engagement".

KMPG SA has been strongly criticised for its years-long role in auditing Gupta-owned companies, and has lost clients. Former Finance Minister Pravin Gordhan described KPMG SA as a “willing participant in state capture” in conversation with radio host Eusebius McKaiser on CapeTalk on Tuesday morning. 

Unless the Gupta-related companies appoint new auditors quickly, they face the prospect of functioning without both auditors and banking services from next month. 

This after 20 companies controlled by the family lost a court bid last week to stop the Indian-based Bank of Baroda from shutting their accounts.

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

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.0%
Rand - Pound
23.91
-0.0%
Rand - Euro
20.41
+0.1%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.13
-0.0%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent-ruolie
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders