NEWS

Telkom Won't Work With KPMG Again

Another major corporate cuts its ties with the "captured" auditor.

09/10/2017 13:53 SAST | Updated 09/10/2017 13:58 SAST
Bloomberg via Getty Images

Telkom South Africa won't award another contract to embattled auditing firm KPMG. It is yet another in the list of major corporations that have cut ties with the "captured" multinational.

"The recent media reports surrounding KPMG South Africa and allegations around the conduct of some of its employees have been met with great concern," Telkom said in an email to staff, seen by Bloomberg.

"Telkom conducts a substantial amount of business with KPMG and has taken the events very seriously," it said.

This follows Standard Bank's announcement on Friday that it would be terminating KPMG's services.

Wits University said last week that it could no longer keep KPMG on as its auditor in light of the revelations against it, specifically KPMG's role in authoring the discredited Sars "rogue unit" report and its work for the Gupta family.

"We appreciate the fact that Telkom will wait until the investigation by the IRBA [Independent Regulatory Board for Auditors] has been concluded," KPMG spokesperson Nqubeko Sibiya said in an emailed response to questions. "We ask our clients and the public to wait for the outcome of the IRBA investigation and the independent inquiry."