Nedbank the latest to drop KPMG

Nedbank has announced that it will appoint Ernst & Young as joint external auditors in May 2019 – becoming the latest firm to drop scandal-hit KPMG.

Ernst & Young will provide its services alongside Deloitte & Touche, who have, as a consequence of the tender process been nominated to remain the joint external auditor of the companies – subject to shareholder approval, the ban said in a statement on Monday (29 October).

Bloomberg recently reported that KPMG has continued to lose staff and clients in South Africa, more than a year after issuing a public apology for some of the work it did in the country.

The drop off in work and departures are a consequence of the fallout from corruption allegations that engulfed former President Jacob Zuma and his friends the Gupta family in 2017.

A central bank investigation published this month said South Africa should also seek damages from KPMG for the role it played in a corruption scandal that saw at least R1.9 billion stolen from VBS bank.

In June, KPMG’s South African unit said headcount slumped to 2,200 from 3,400 a year earlier, with consultations for further reductions underway.

More than 10 clients across various sectors have severed ties with KPMG since last year, including Barclays Africa Group and South Africa’s Auditor-General.


Read: KPMG continues to lose staff and clients in South Africa – report

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Nedbank the latest to drop KPMG