Metro to end KPMG contract

2017-10-25 06:01

THE Nelson Mandela Bay Municipality (NMBM) said on Friday it would phase out its current contract with global audit, tax and advisory firm, KPMG, in line with a motion and subsequent resolution reached at the Nelson Mandela Bay Municipality’s Council Meeting on Thursday.

“It was agreed that the recent ethical scandal surrounding KPMG is ground for concluding the metro’s existing contract with the auditing firm,” NMBM Member of the Mayoral Committee for Municipal Public Accounts, Councillor Lance Grootboom said.

“KPMG currently manages the metro’s ethics hotline, and our audit and risk plan.

“This coalition government wants to ensure that those companies with whom we have existing contracts are beyond reproach.”

Grootboom added that KPMG currently manages the city’s audit plan and, thus will need to hand this over to internal resources within the next three months.

“Corporate services, together with the Internal Audit Directorate, in conjunction with KPMG, will draft an exit strategy document with detailed handover processes and time frames.

“The Municipal Public Accounts Committee (MPAC) will conduct an oversight function to ensure the exit strategy is developed within the time frames so that the internal audit is properly capacitated.

“The coalition government is serious about rolling out an audit and risk plan that is robust and reliable and that will minimise all fiscal and financial risks that could compromise our cities finances,” said Grootboom.

“We are aware that this will require a responsible and comprehensive phasing out of the current contract in order not to compromise our internal risk controls.”


Inside News24

Traffic Alerts
There are new stories on the homepage. Click here to see them.


Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.

Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire network.