Saica and KPMG part ways

The South African Institute of Chartered Accountants’ (Saica) Board has accepted KPMG’s offer to resign as Saica’s external auditors.

Saica said in a statement KPMG cited possible perceived independence concerns if they were to perform the 2018 audit as a result of the current Saica-appointed Ntsebeza Inquiry.

The inquiry is looking into some of the former and current KPMG-employed Chartered Accountants and will be concluding shortly.

"All the parties believe this is in the best interests of Saica, its members and KPMG."

Saica said it will now begin a tender process to appoint external auditors and its Board will table a progress report to its members at the Annual General Meeting on 26 June 2018.

Following the completion of the tender process, a Special General Meeting will be called to approve the appointment of the recommended audit firm, Saica said.

The Ntsebeza inquiry, led by Advocate Dumisa Ntsebeza was established to investigate the conduct of Saica's employment of KPMG from January 2013 onward to determine if they acted in contravention to the Saica code of Code of Professional Conduct, Fin24 previously reported.

The inquiry panel also includes Advocate Vuyani Ngalwana SC, Dr. Claudelle von Eck, Freeman Nomvalo and Malcolm Robert Johnston.

The inquiry was meant to conclude in April 2018, but Ntsebeza said the report would be released at the end of June.

A number of companies have dropped KPMG. Mutual bank Finbond on Thursday announced in a notice to shareholders its board of directors could not justify "further association with KPMG".

Last month the auditing firm lost three of its clients in two days. These being Sibanye Stillwater, ABSA and Redefine Properties.

The Auditor-General also terminated its contract with KPMG and Gupta-linked Nkonki Inc in April. Auditor General Kimi Makwetu told Fin24 that the outcome of investigations into KPMG will determine if the AG would do business with the auditor again.

* SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox.

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
Rand - Pound
Rand - Euro
Rand - Aus dollar
Rand - Yen
Brent Crude
Top 40
All Share
Resource 10
Industrial 25
Financial 15
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders