Loading...

KPMG says it has dropped clients amid tighter work protocols

Nov 14 2017 20:20

Cape Town - KPMG’s CEO Nhlamu Dlomu says the auditing firm has "terminated several client relationships" since it put more stringent work protocols in place in the wake of criticism over its business dealings with the Gupta family.

“I have put on record publicly that a priority action is the review of our existing client and engagement portfolio," Dlomu wrote in a letter to clients on Friday.

"This review continues but we can confirm that we have terminated several client relationships which did not meet the tighter protocols we have now put in place.”  

She did not say which, or how many clients had been dropped. 

Dlomu said that the first meeting between KPMG and the South African Institute of Chartered Accountants, who are conducting an inquiry into the work the auditor did for SARS and the Gupta family, would take place on Monday November 13.

“As you recall, we called for an independent inquiry so the public could have rightful reassurance concerning work performed by KPMG for SARS and for companies related to the Gupta family,” said Dlomu, who was elevated to the position of KPMG SA's CEO after the firm's executive leadership was cleared out in mid-September.

“We welcome the establishment of the inquiry by the South African Institute of Chartered Accountants under the leadership of Advocate Dumisa Ntsebeza SC. “ 

Dlomu said KPMG was looking forward to the publication of the inquiry's findings, which are expected in April 2018. 

She also said the auditor had interviewed a number of potential candidates for the roles of independent non-executive directors and members of an Advisory Board, but did not provide further details. 

Following apparent calls by existing KPMG clients to change the way KPMG interacted with the media, Dlomu added that KPMG had "engaged a number of professional advisors to support my team as we manage our media interaction more vigorously".

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.

kpmg  |  nhlamu dlomu  |  state capture  |  gupta family

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're talking about: MINI BUDGET

Finance Minister Malusi Gigaba has laid bare South Africa's economic woes. Visit our Mini Budget Special for all the action.
 

Money Clinic

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

Voting Booth

Free education in South Africa is:

Previous results · Suggest a vote

Loading...