Germany’s Munich Re has discontinued using KPMG as its auditor, the latest company to drop KPMG since the scandal involving President Jacob Zuma and the Gupta family.
The company was involved in a scandal consisting of the famous Gupta family and involving in the auditing of companies owned by the Gupta family.
“It is well known that KPMG has faced some reputational and credibility challenges,” said the CEO of Munich Re Africa, Nico Conradie. “I don’t want to accuse them of anything but we just felt that it would be better for us if we are dealing with a new auditor in 2018.”
Munich Re took this decision last Friday, which was weeks after the reinsurer’s director, Iraj Abendia, quit, protesting over the board’s decision to wait for the outcome of KPMGs internal investigation before taking any action.
More large companies and enterprises are considering whether to leave one of the biggest and most influential names in accounting due to the scandal.
A reliable source stated the matter at one of the big four banks said the bank had received letters from major South African clients advising them to cut ties with KPMG.
On other reports, cutting ties with the big four banks may interfere with the economy of the country, which is the reason they are still working together.