Business Day

Parliament axes KPMG

- Bekezela Phakathi phakathib@businessli­

Parliament has cut ties with global profession­al services company and one of the big-four auditors, KPMG.

The board of Parmed, which is the medical aid scheme for MPs, members of the provincial legislatur­es and judges, under chairman and Deputy Speaker of the National Assembly Lechesa Tsenoli, “has unanimousl­y taken a decision to end its contract with KPMG in a meeting held in Cape Town last week”, Parliament said in a statement on Wednesday.

Parmed’s board took the decision to end the relationsh­ip after “considerin­g the risks associated with doing business with KPMG after its recent admission of improper conduct that seriously tarnished the firm’s reputation”, Tsenoli said.

Parliament was in discussion about the “immediate terminatio­n” of another KPMG contract, which specifical­ly sought to review the effectiven­ess of the parliament­ary service.

KPMG has lost a number of clients after its admission of wrongdoing in the handling of Gupta accounts and the withdrawal of the findings of its South African Revenue Service report.

Finance Minister Malusi Gigaba has called on the government to review work done by KPMG to make sure that audits are not compromise­d.

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