April 17, 2018
Auditor-general points to ‘significant reputational risks’ associated with firm.
KPMG has been banned from auditing public institutions in South Africa, compounding a crisis for the firm in the country over its role in a high-profile bank failure and ties to the controversial Gupta family.
The South African auditor-general’s office said on Tuesday that it had stopped contracting KPMG for government work with immediate effect, after reviewing ties since last year. KPMG apologised and several partners left its South African office last year over its work for companies linked to the Guptas, who have been accused of using their relationship with former president Jacob Zuma to divert state contracts in order to benefit their businesses. Mr Zuma resigned in February under pressure from the ruling African National Congress, including over the corruption scandal. His successor, Cyril Ramaphosa, has pledged to root out graft from government.
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Source: Financial Times. Accessed on April 20, 2018.
