Business 24.4.2018 09:32 am

Nkonki goes on voluntary liquidation, blames negative media reporting

Nkonki's Sunninghill office, Johannesburg. Picture: Google Maps

Nkonki's Sunninghill office, Johannesburg. Picture: Google Maps

The audit firm says it ‘was left with no option but to voluntarily wind up the company’.

Troubled audit firm Nkonki Inc has blamed “negative media” reporting as it announced it was voluntarily liquidating its Sunninghill office after the termination of the firm’s lucrative contracts with the government.

Last week, Auditor-General Kimi Makwetu said his office had terminated audit contracts worth R90 million with Nkonki and embattled KPMG due to “significant reputational risks” associated with the firms.

Nkonki was thrust into controversy after a media exposè that Salim Essa, an associate of the Gupta family that has been accused of corrupt relationships with senior government officials, had funded the R107 million management buyout by Nkonki’s majority shareholder and former chief executive Mitesh Patel, who resigned earlier this month.

In a statement issued late Monday by Nkonki’s lawyers, Nicqui Galaktiou Inc, the firm said it “was left with no option but to voluntarily wind up the company”.

“The termination of these contracts arose as a direct results of negative media publications against majority shareholder, Mr Mitesh Patel, concerning the purchase of his shareholding in Nkonki Inc [Sunninghill],” the firm said.

Nkonki’s Sunninghill office employs 180 people and accounts for nearly half of the firm’s staff complement in its nine branches countrywide.

 – African News Agency (ANA)

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