TERMINATION OF KPMG CONTRACT EXTENDS TO ALL GOVT BRANCHES

JOHANNESBURG- Auditor-General Kimi Makwetu said that the termination of its contract with KPMG expands to all branches of government.

The Auditor General announced on Tuesday that  KPMG and Nkonki Inc, which are implicated in Gupta-related scandals, they will no longer be doing audit for municipalities and state-owned entities across government.

He added that he had an inkling that KMPG had its issues.

He said, “We’ve asked questions over time, especially if you look at the KPMG matter, it comes from when we made a decision that we’re going to carry on with them and we wanted to understand whether what we did with KPMG International report, was it an alteration or was it a systemic failure that has affected their operations.”

This is the first time the Auditor General is terminating its contracts from one of the big four firms, the “big four” are Ernst & Young, PricewaterhouseCoopers, Deloitte & Touche and KPMG.

Political analyst Erwin Schwella said this development means that auditing firms are finally being held accountable.

“Accountability is coming to the fore again and in the process, everybody will perhaps learn these lessons and in future we may be better off. We made errors and that then gives us the opportunity to learn how to do things better.”

Photo Credit- www.thesouthafrican.com

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