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Finbond appoints new auditors after giving KPMG the boot

Jul 22 2018 14:30

Cape Town - Deloitte has been appointed as the new external auditors of Finbond Group Limited. 

KPMG’s appointment as external auditors terminated at the end of June 2018 after the JSE-listed mutual savings bank announced in March that it is parting ways with the scandal-hit auditor.

Finbond's audit committee recommended the appointment of Deloitte, which was then approved by shareholders at its annual general meeting. 

The audit committee also appointed BDO South Africa as external auditors, effective immediately.

"This follows extensive deliberation on the suitability of various audit firms for Finbond, considering size, scale and current audit requirements," the mutual bank [JSE:FGL] stated in a notification sent out by the JSE on Friday.  

KPMG has haemorrhaged a string of clients after the Auditor General ended its contracts with the firm to audit the public sector.

It suffered severe reputational damage owing to allegations of misconduct linked to audit work it did for the controversial Gupta family's business empire.

KPMG also come under scathing attack for its role into the SA Revenue Service (SARS) intelligence unit, which was incorrectly dubbed the "rogue unit". Parts of the report have since been retracted.

However, suspended tax boss Tom Moyane is believed to have used the R23m report to get rid of senior SARS officials.

KPMG’s work of the Gupta accounts and the SARS report are under separate investigations by the Independent Regulatory Board of Auditors and the South African Institute of Chartered Accountant (SAICA). 

KPMG has also been embroiled in corruption linked to VBS Mutual Bank, which has since been placed under curatorship.

The troubled firm announced in June that it will close its regional offices, with up to 400 people losing their jobs in South Africa.

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