Finbond appoints new auditors after giving KPMG the boot

KPMG announced that two partners have resigned for work done for VBS Mutual Bank.
KPMG announced that two partners have resigned for work done for VBS Mutual Bank.

Cape Town - Deloitte has been appointed as the new external auditors of Finbond Group Limited. 

KPMG’s appointment as external auditors terminated at the end of June 2018 after the JSE-listed mutual savings bank announced in March that it is parting ways with the scandal-hit auditor.

Finbond's audit committee recommended the appointment of Deloitte, which was then approved by shareholders at its annual general meeting. 

The audit committee also appointed BDO South Africa as external auditors, effective immediately.

"This follows extensive deliberation on the suitability of various audit firms for Finbond, considering size, scale and current audit requirements," the mutual bank [JSE:FGL] stated in a notification sent out by the JSE on Friday.  

KPMG has haemorrhaged a string of clients after the Auditor General ended its contracts with the firm to audit the public sector.

It suffered severe reputational damage owing to allegations of misconduct linked to audit work it did for the controversial Gupta family's business empire.

KPMG also come under scathing attack for its role into the SA Revenue Service (SARS) intelligence unit, which was incorrectly dubbed the "rogue unit". Parts of the report have since been retracted.

However, suspended tax boss Tom Moyane is believed to have used the R23m report to get rid of senior SARS officials.

KPMG’s work of the Gupta accounts and the SARS report are under separate investigations by the Independent Regulatory Board of Auditors and the South African Institute of Chartered Accountant (SAICA). 

KPMG has also been embroiled in corruption linked to VBS Mutual Bank, which has since been placed under curatorship.

The troubled firm announced in June that it will close its regional offices, with up to 400 people losing their jobs in South Africa.

* 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 only R75 per month, you 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.
Subscribe to News24
ZAR/USD
16.19
(-0.10)
ZAR/GBP
21.11
(-0.12)
ZAR/EUR
19.19
(-0.12)
ZAR/AUD
11.55
(-0.13)
ZAR/JPY
0.15
(-0.14)
Gold
1901.55
(+0.01)
Silver
24.57
(+0.10)
Platinum
902.03
(+0.40)
Brent Crude
41.85
(-1.66)
Palladium
2378.04
(+0.61)
All Share
55339.58
(+0.99)
Top 40
50692.28
(+0.83)
Financial 15
10790.70
(+3.99)
Industrial 25
74905.70
(+1.05)
Resource 10
52561.57
(-0.49)
All JSE data delayed by at least 15 minutes morningstar logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
24% - 69 votes
No, I did not.
52% - 149 votes
My landlord refused
24% - 70 votes
Vote