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Sasfin fires KPMG in wake of Gupta scandal

Financial services company puts auditor role out to tender.
Sasfin chooses Deloitte & Touche as independent sponsor. Picture: Moneyweb

Sasfin Holdings, a South African financial-services company, said it’s firing KPMG as its independent sponsor and searching for a new auditor, becoming the second company to announce it has dumped the firm because of work it did for the politically connected Gupta family.

Hulisani, which invests in energy projects, also moved to replace KPMG, saying on Tuesday it wanted shareholders to vote to appoint PricewaterhouseCoopers as its auditors. KPMG audited Hulisani’s full year results, which were published in May.

The decisions were based on “the well-publicised concerns recently raised with regard to KPMG,” Johannesburg-based Sasfin said in an emailed statement on Tuesday. Deloitte & Touche has been chosen as a sponsor, which provides advice and services related to a company’s listing on the Johannesburg Stock Exchange. The role as Sasfin’s auditor, which KPMG held for the past 18 years, has also been put out to tender, it said. 

Read: Hulisani drops KPMG due to reputational risk

Eight top executives at KPMG’s South African office quit on Friday after it was implicated in an accounting scandal linked to the wealthy Gupta family, who are friends of President Jacob Zuma and stand accused of looting billions of rand while exerting undue influence over the state.

Read: KPMG clears out top leadership over Gupta scandal

More terminations

 

Sygnia, a Cape Town-based money manager, terminated KPMG’s services in July. Chief executive officer Magda Wierzycka said on Thursday that others may follow suit but that getting rid of an auditor and finding a new one was not an easy process.

Read: Sygnia fires KPMG

The Institute of Directors in Southern Africa has suspended co-branding activities with KPMG, including sponsorship of its golf day.

Read: Institute of Directors cuts ties with KPMG

Africa’s biggest insurer Old Mutual is talking with KPMG “at the highest level,” the London-based company said on Tuesday. “We note KPMG’s announcement and will continue to engage with them on this matter.”

© 2017 Bloomberg

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From the information available to the public it is clear that kpmg is unethical. I am surprised the big banks are still not taking action. What are they waiting for ?

scrutinising their relationships with KPMG…..ghmf…whatever that means

A small step in the right direction. One more brick removed from the wall of corruption built by old Zupta783 and his cronies, and overseen by none other than the Guptas & Co.

sadly Zuma and co. will still be around.

Too little too late however. Corruption too deep. Why did they KPMG not disclose this earlier? Shows their true colours.Only after they were implicated did they react.How can anybody trust them ever again.

KPMG is only the messenger who made a mess of it. What about those guilty of the actual corruption. Surely their guilt is greater than that of KPMG?

” scrutinising their relationships with KPMG” ? come on..they are criminals just terminate their services…before it is too late for you too.

Their banking accounts must be closed toooooooooooooo……

KPMG = Kom Party met Guptas

just read KPMG’s wikipedia listing, shockingly they have a history of fraudulent improprieties all over the world.

What is amazing is that these corporates can turn on KPMG so swiftly and efficiently but are silent about the true beneficiaries of their wrong doing ie teh evil triumvirate in Saxonwold and their accomplices) in the union building

What’s to scrutinize, Old Mutual?
Fire KPMG; it will probably cause the closure of KPMG’s Cape Town branch, their biggest CT client is Old Mutual head office in Pinelands.

I asked on another article but didn’t get a reply from anyone – I’ll try here. So, by your reasoning – we must jump to firing them —> same should apply here then: South Africa has a CEO (along with some of his top management) who appears to have done some bad dealings. As it’s taking while to punish the CEO sufficiently, other countries should rather punish the whole of South Africa – withhold investment, and hope the country goes down in flames, people loose jobs etc. (You agree then that you should be punished for what your politicians and president have done?) Does that seem rational?

In fact we are being punished for the nefarious deeds of our CEO and his henchmen. Think – drying up of investment, credit downgrades, slippage in most international ratings, increase in cost of borrowings, loss of value of the rand etc.

And do you think that is fair?

End of comments.

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