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Exodus continues as Finbond dumps KPMG

May 31 2018 12:23

Finbond has become the latest SA company to part ways with auditor KPMG SA. 

In a shareholder announcement on Thursday, the mutual bank [JSE:FGL] said its board of directors had resolved that it could “no longer justify nor support Finbond’s further association with KPMG”.

“[The board], through the audit, risk and social and ethics committees, have investigated and assessed the well-publicised serious concerns with regards to KPMG as reported in the media as well as communications in response thereto by KPMG. Given the board’s commitment to good governance, principled and ethical behaviour, the board has resolved that it can no longer justify nor support Finbond’s further association with KPMG.”

KPMG did not immediately reply to a request for comment.

The JSE-listed mutual savings bank said KPMG’s appointment as external auditors would terminate at the end of June 2018. 

It is set to commence with a tender process for new auditors. 

"The board and the risk and audit committees are satisfied that enhanced quality processes and quality reviews from KPMG resulted in an audit of satisfactory quality for the financial year ending February 2018."

A number of SA businesses have chosen to part ways with the auditor in recent months as its reputation suffered harm in light of allegations of misconduct regarding previous audit work it did for Gupta-linked companies, and its role in the controversial SA Revenue Service 'rogue unit' report.

The auditor, under its new chairperson Wiseman Nkuhlu has been trying to rebuild public trust. In April he announced KPMG SA would review all work done by partners in the past 18 months. 

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kpmg  |  financial services  |  auditing
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