KMPG is an audit, tax and advisory firm. They are one of the largest in the country. The name of the company is based on the names of the founding members Klynrvekd, Peat, Marvick and Goerdeler.
KPMG SA is facing many challenges with most of their biggest clients pulling out. This happened after a scandal between SARS and the Gupta’s emerged a few months ago.
KPMG was reported to have admitted that the report stating the findings and recommendations on the SARS case were flawed and “should not be relied on”.
Many KPMG SA executives resigned after this. KPMG SA has then appointed a new CEO, the first black female CEO, Nhlamu Dlomu. Soon after many of their big clients started walking out.
KPMG has been asked to withdraw from bidding for government tenders.
Furthermore, AVI, a consumer group in SA that has had KPMG SA as their external auditors since 2002 has terminated their contract with them.
This is following the termination of contracts instigated by Munich Re reinsurers, Sasfin – the financial services firm, Parmed – parliament’s medical scheme and Interwaste – waste managers, amongst others.
With the government slowly parting ways with KPMG SA, they may face serious financial problems. The new CEO has been given the task to save the company and regain trust.