Call for KPMG blacklisting

The South African National Civic Organisation (Sanco) has called on government and business to blacklist KPMG for unethical behaviour.

The call follows the resignation of a number of the international audit firm’s senior South African executives and withdrawal of its findings on the South African Revenue Service (Sars) report into the so-called rogue unit.

Sanco spokesperson Jabu Mahlangu said Sasfin’s decision to terminate its audit tender with the firm demonstrated its commitment to good corporate governance and upholding the fundamentals of independent audits, which characterised how institutions are held accountable to shareholders and investors.

Mahlangu urged Minister of Finance Malusi Gigaba, pictured, to issue a directive to all state-owned entities to terminate any relationship that they have with KPMG. “The Financial Services Board and the auditor-general’s office must likewise take drastic steps, which communicates zero-tolerance to political power play by audit firms as they compromise not only their independence but also the credibility of audit standards and outcomes in general.”

He said that harsh action must also be taken against companies that benefitted from the misrepresentations by KMPG.

“Beneficiaries of KPMG’s treacherous acts that undermined our economy, leading to unwarranted credit downgrades that are hurting our economy and causing untold misery to the poor, must not escape the wrath of the law,” he added.

Last week, KPMG announced it had withdrawn its report on the work the audit firm did for Sars.

On Friday, KPMG SA appointed Nhlamu Dlomu as its new chief executive. Dlomu said she was committed to restore the embattled audit firm’s fundamental values of ethics and integrity in a bid to salvage its credibility.

Trevor Hoole tendered his resignation on Friday, with chief operating officer Steven Louw also stepping down. – ANA