African Rainbow Minerals drops KPMG

The South African miner now joins a host of other local companies breaking ties with KMPG.

Picture: Facebook.

JOHANNESBURG - African Rainbow Minerals has become the latest company to drop KPMG as its auditor.

KPMG has been losing clients after its own investigation last month found flaws in work it did for South African Revenue Service (Sars) and the Guptas who’ve been accused of undue influence over President Jacob Zuma and the government.

The South African miner now joins a host of other local companies breaking ties with KMPG.

The Guptas and Zuma deny wrongdoing and say they are victims of a politically motivated witchhunt.

TRAIL OF CLIENTS CUTTING TIES

Last week, the Nelson Mandela Bay metro said it would be phasing out its contract with KPMG within the next three months.

The Economic Freedom Fighters brought a motion at a full council meeting on Thursday, calling for the immediate termination of the contract, while earlier this month, KPMG's new CEO Nhlamu Dlomu announced a new executive team to lead the embattled auditing company.

The firm made a major shakeup to its South African leadership structures amid controversy over its Gupta dealings.

"Gary Pickering, a vastly experienced and highly respected Chartered Accountant and Audit Partner will lead our Audit practice. Sipho Malaba will continue as the executive team member responsible for our largest business unit, Financial Services Audit. Modise Maseng will lead our Public Sector work, continuing to help many public institutions plan and deliver better programmes for South African citizens," KPMG said in a statement.

Last month, eight executives, including then CEO Trevor Hoole, stepped down.

KPMG has since lost some of its major clients, with The Foschini Group (TFG) being the one of latest company to cut ties with the firm.

TFG has appointed Deloitte and Touche as the clothing company's new external auditors replacing KPMG.