KPMG RE­PORTS EX-PART­NER

Weekend Argus (Sunday Edition) - - METRO -

KPMG South Africa has re­ported a for­mer part­ner to the po­lice for his al­leged role in a cor­rup­tion scan­dal in which al­most R2 bil­lion

was stolen from VBS bank, two em­ploy­ees fa­mil­iar with the

mat­ter said.

KPMG sent an in­ter­nal email to staff on Fri­day say­ing the board had “as­sessed in­for­ma­tion on VBS and sup­ported crim­i­nal ac­tion be­ing taken” against Sipho Mal­aba. KPMG au­dited VBS Mu­tual Bank’s fi­nan­cial re­sults be­fore it was placed un­der cu­ra­tor­ship in March.

Mal­aba re­signed in April fac­ing dis­ci­plinary charges for not

dis­clos­ing fi­nan­cial in­ter­ests in con­nec­tion with VBS. He could not

be reached for com­ment. A cen­tral bank in­ves­ti­ga­tion of the scan­dal, led by ad­vo­cate Terry Mo­tau, rec­om­mended crim­i­nal charges be brought against more than 50 peo­ple and en­ti­ties who ben­e­fited from the theft. Mo­tau found Mal­aba had com­mit­ted fraud and had been aware of a cash hole when he gave his au­dit opin­ion on the bank’s an­nual fi­nan­cial state­ment in July last year. News24 quoted a state­ment by Mal­aba’s lawyers which said the re­port was “rid­dled with

in­ac­cu­ra­cies”.

KPMG first re­ported Mal­aba to the Hawks on Septem­ber 10, one

em­ployee said.

KPMG told staff it had “sub­mit­ted a sec­ond re­port to the Hawks” after Mo­tau’s in­ves­ti­ga­tion.

Sheree Rogers, a mem­ber of Mal­aba’s le­gal team, said it had not re­ceived com­mu­ni­ca­tion from KPMG re­gard­ing Mal­aba and the Hawks. A spokesper­son said the unit did not dis­cuss in­ves­ti­ga­tions in pub­lic.

Mal­aba blamed fail­ures in the VBS au­dit on an­other au­di­tor. Mo­tau’s re­port said the scale of loot­ing would not have been pos­si­ble had KPMG not signed off on the bank’s re­sults and that South

Africa should seek dam­ages from KPMG for its role.

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