‘New’ KPMG announces new executive team to restore trust
Embattled auditing firm KPMG South Africa yesterday announced a new executive team in a bid to restore public trust.
Last month, KPMG’s top eight executives, including chief executive Trevor Hoole, resigned following a storm created by work the firm did for the South African Revenue Service (Sars) and the Gupta family.
The firm has been losing clients on a daily basis since it recalled the Sars “rogue unit” report and is being investigated by the Independent Regulatory Board for Auditors (IRBA).
Nhlamu Dlomu, KPMG South Africa’s chief executive, announced “a strong and experienced team” of KPMG partners to lead the firm.
Gary Pickering, an experienced and respected chartered accountant and audit partner, will lead KPMG audit practice.
Pickering has been the lead or engagement partner of several of KPMG’s major clients in the financial services sector.
Sipho Malaba, also a chartered accountant, will continue as the executive team member responsible for KPMG’s largest business unit, financial services audit.
In addition, Malaba will lead the firm’s strategic projects.
Granville Smith will lead KPMG’s advisory practice and Joubert Botha, currently the chief operating officer for tax, will serve as interim leader for that part of the business. Modise Maseng will lead KPMG public sector work, while Makgotso Letsitsi will be the leader for KPMG People.
All three functions of the business – audit, tax, and advisory – will be supported by the marketing team, which will be led by Nosisa Fubu. Andrew Cranston, an experienced partner, has been appointed as the interim chief operating officer.
“This is day one for the new KPMG, a KPMG where public interest will share an equally important role with enhanced governance, quality and ethics. We understand that the immediate road ahead will be challenging, but I believe the individuals in this team have the necessary skill, experience, passion and energy to lead KPMG to, once again, be a standard setter in the profession,” Dlomu said.
“This is an experienced, talented and diverse leadership team that has the right skills as well as the determination, to rebuild KPMG.”
Dlomu also said they had allocated a full-time executive position to the head of risk to manage client acceptance and retention.
That role will be filled by Brian Stephens, a South African who is a former partner of KPMG’s US member firm, Dlomu said.
The Foschini Group has become the latest company to have dumped KPMG. Yesterday, the clothing retail group released a statement to its shareholders:
“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 March 31, 2018.
“The change in audit firm, which is effective immediately, was initiated following the concerns raised regarding KPMG.”
Business Report yesterday revealed that Telkom has cut ties with the auditing firm, saying it would not award new business to KPMG SA until the investigation by IRBA has been concluded.
Also see Page 15
Telkom has cut ties with the auditing firm.