Auditor General terminates contracts with KPMG, Nkonki

The two embattled audit firms worked on public sector deals for the office.

FILE: Auditor-General Kimi Makwetu. Picture: GCIS

JOHANNESBURG - The Auditor General has terminated its contracts with KPMG and Nkonki.

The two embattled audit firms worked on public sector deals for the office.

Auditor General Kimi Makwetu says issues around the companies have been concerning and pose significant risk to the reputation of his office.

Makwetu says recent media reports relating to the external audit of VBS Mutual Bank and the conduct of KPMG audit partners are some of the reasons that prompted the decision to withdraw all KPMG audit mandates with immediate effect.

Political analyst Erwin Schwella says KPMG needs to focus on rebuilding its reputation.

ā€œIā€™m not surprised that he has cut ties with KPMG because in all these things there needs to be strong reputation that supports other reputations. And KPMG is really trying to do the right thing currently but under pressure.ā€

In a short statement on Tuesday, KPMG says it hopes the termination of the contract is only temporary.