19/09/2017 11:38 SAST | Updated 19/09/2017 12:30 SAST

Sasfin Drops KPMG As A Sponsor Over Concerns About 'Good Governance'

Sasfin has confirmed that it is terminating its contract with auditing firm KPMG.

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Sasfin confirmed on Tuesday that it will be terminating its contract with auditing firm KPMG as an independent sponsor, according to EWN.

Sasfin said the decision was part of its commitment of good governance.

Read: KPMG Shocker: Audit Firm Disavows Sars 'Rogue Unit' Report, Eight Senior Staff Resign

Fin24 reported that Sasfin was ditching KPMG as its JSE sponsor as well as its auditor after 18 years over concerns over good governance, and will be switching toDeloitte & Touche Sponsor Services from Tuesday.

Former finance minister Pravin Gordhan slammed KPMG after it announced this week that it was withdrawing a report about the South African Revenue Service (SARS), which was used as evidence in a police probe against him and led to the removal of senior staff.

SARS has been rocked by resignations of several senior executives since Tom Moyane was appointed as commissioner in 2014. Moyane clashed with Gordhan when he halted a restructuring plan at SARS during his time as finance minister. Sars is taking legal action against KPMG and reporting the firm to the Finance Minister to have it blacklisted for unethical conduct.

In addition, the embattled auditor has admitted that it should have ceased work for the Gupta family earlier and said the family's companies were often "misleading" and "misrepresenting" facts.

Following allegations of state capture, Sasfin, along with Standard Bank, Barclays Africa, Nedbank and FirstRand have also cut ties with Gupta-owned company Oakbay.