Foschini dumps embattled KPMG

The Foschini Group has joined a number of companies that have dumped embattled auditing firm KPMG following its involvement with the Gupta family and Sars’ rogue unit scandals.

On Monday, the clothing retail group released a brief statement to its shareholders notifying them of their move.

“Shareholders are advised in terms of paragraph 3.78 of the JSE Listings Requirements that Deloitte & Touche have been appointed as the company’s external auditors, with Mr Michael van Wyk as designated audit partner for the current financial year ending 31 March 2018, replacing KPMG Inc.

“The change in audit firm, which is effective immediately, was initiated by the company following the concerns raised regarding KPMG,” the company said.

KPMG had admitted to some wrongdoing and removed nine senior executives last month.

The company’s international chairperson has also apologised to South Africans for the companies’ conduct.

In an attempt to restore public trust, the company has appointed new senior executives.

On Monday, the Business Report revealed that telecommunications firm Telkom has also cut ties with the auditing firm citing concerns over recent allegations about the conduct of some of the company’s senior employees.

Last week, Wits University and Interwaste Holdings dumped the company while the Democratic Alliance said it would review its contracts with the firm where it governs.

Absa and Investec are also reviewing their contracts with the firm while Standard bank and auditor-general announced that they would stick with the embattled firm.

Parliament, MPs’ medical aid fund, Parmed, financial services company, Sasfin, energy investment firm Hulisani have also announced that they would cut ties with the embattled firm.