Auditor-General to stick with embattled KPMG

The Auditor-General of South Africa has announced that his office would not drop consultancy firm KPMG, which has lost about four big clients in the wake of its Gupta and Sars scandals.

The firm has partially admitted to wrongdoing and fired nine senior executives.

In a statement released on Friday, AG Kimi Makwetu said his team met with the firm and decided to continue with audits already allocated to it.

“While we are awaiting the outcome of the above investigations, the Auditor-General will continue to secure the services of KPMG SA, limited to the audits currently allocated to them. This arrangement will be in place as an annual allocation rather than a two-yearly allocation of audit work as is current practice with all firms we contract with. This will be reviewed subject to the outcome of the pending investigations.

“We have agreed to continue to formally engage with KPMG SA as they make progress in the areas already identified for immediate rectification,” said Makwetu.

On Wednesday, Parliament and Parmed medical aid scheme announced they would terminate their contracts with the firm.

Earlier this month, energy investment firm Hulisani and financial services company Sasfin also dumped KPMG.

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