Property companies consider dumping audit firm
A group of real estate companies that are externally audited by KPMG are monitoring investigations into the firm before deciding whether or not to continue to do business with the financial services firm.
KPMG International is reviewing the work KPMG SA did for the Gupta family.
The Independent Regulatory Board for Auditors (Irba) is also investigating its Guptarelated work.
Growthpoint Properties, the largest property company based in SA, said on Friday it was following investigations.
“We are monitoring what the regulators findings are and will make a decision based on that,” said Growthpoint investor relations head Lauren Turner.
Redefine Properties, which is also audited by KPMG, is also monitoring investigations into the auditing firm. “Redefine is audited by KPMG. We are aware of the allegations against KPMG. Redefine expects all our stakeholders to demonstrate an unyielding commitment to the highest ethical standards.
“We understand KPMG are subject to a number of investigations and we are monitoring these developments and will assess the situation once more information becomes available,” said CEO Andrew Konig.
Another KPMG client, Hyprop Investments, declined to comment when asked if it was reassessing its relationship.
Texton Property Fund — also a client — said it was paying attention to the investigations. “The audit and risk committee reviews the appointment of the auditor on an annual basis and will be taking the [Irba investigations] into account in its review of the appointment in the current year,” a statement said.
Pan-African Investment and Research Services CEO Iraj Abedian said on Thursday he would step down from insurance group Munich Re Africa’s board of directors after 12 years because KPMG was its auditor.
On Friday, he implored more directors to sever ties with KPMG. “I believe that no director needs to wait any more.
“Those who are waiting for an Irba report or a KPMG International report, they are doing themselves a disservice. I am appealing to every selfrespecting director, stop playing with the process and make a judgment on ethics.”
The Institute of Directors in Southern Africa last week suspended co-branding activities with KPMG.
Nqubeko Sibiya, marketing and communications specialist at KPMG, said: “KPMG is currently not doing media interviews. We will do so once KPMG International has made its findings known. The target date for completion is end of September 2017.”