KPMG REPORTS EX-PARTNER
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
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
KPMG first reported Malaba to the Hawks on September 10, one
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.