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KPMG International chairman apologises for South Africa failings

Hulisani and Sasfin have dropped the auditing firm today.
Picture: Moneyweb

KPMG International’s chairman apologised for the auditing firm’s failings in South Africa where it is losing clients amid a scandal involving business friends of President Jacob Zuma.

Read: Hulisani drops KPMG due to reputational risk

“I sincerely apologise for what went wrong in KPMG South Africa. This is not who we are,” said John Veihmeyer.

The auditor cleared out its South African leadership on Friday after it found that work it did for firms owned by the Gupta family “fell considerably short” of its standards. It found no evidence of crimes or corruption, however.

The Guptas, accused by a public watchdog of improperly influencing government contracts, have denied any wrongdoing, as has Zuma.

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Apology not accepted. KPMG must go the same way as Bell Pottinger; they don’t deserve to call themselves Auditors, as they have NO CREDIBILITY anymore!?? Would you allow them to put their name on your set of Annual Financial Statements!?? They need to close up shop in SA as they will lose more clients. Their current employees, whether innocent or not, will not be gainfully employed.

However, what worries me even more: the king-pins are so far left alone, while all around them are falling….when will the Guptas be brought to justice!??? This is the source of all the rot!!?? Gerrie Nel, are you listening!?

So, by this reasoning: 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. Seems rational

If we need business confidence and investment that creates jobs, we have to earn it. We cannot afford an attitude of entitlement.

Companies are registered and regulated by CIPC. Audit standards are supposedly regulated and enforced by the IRBA.

How are these regulatory bodies going to address this issue?

Same applies at a macro level on government. Foreign countries are saying we haven’t earned the right to investment etc. because of corruption by government. But this punishes the average, everyday citizen just as much – when he didn’t do anything.

With regard to this SARS report and any other issues found, I think they need to go after the individuals responsible for it, and impose very serious penalties (and make it public). Back in school, I never believed in collective punishment, and I still don’t think it’s effective or just.

This is a tricky one as a lot of KPMG people are innocent. how do you find out who is responsible because a lot of blame is going to be shifted. There are careers at stake, jail time families affected etc.

Whisteblowers must be protected and the bad eggs prosecuted and jailed. Note before they do a bobroff and run.

Yes, very tricky. Consider this: you as an employer have 2 prospective auditors – the one from KPMG and the other from any of it’s competitors. Now who would you select, if both have same credentials and experience? Even if the KPMG prospect pleads innocence, I still think they will be at a disadvantage – their careers are potentially ruined in the private sector in SA? Of course, they could become Internal Auditors in Public sector or any Gupta companies that remain?
It is sad and I feel for the innocent KPMG employees.

End of comments.

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