Makwetu: Termination of KPMG contract extends to all govt branches

Makwetu announced on Tuesday that KPMG and Nkonki Inc., which has been implicated in Gupta-related controversies, will no longer be doing audit for municipalities and state-owned entities.

FILE: Auditor-General Kimi Makwetu. Picture: GCIS

JOHANNESBURG – Auditor-General Kimi Makwetu says that the termination of its contract with KPMG extends to all branches of government.

Makwetu announced on Tuesday that KPMG and Nkonki Inc., which has been implicated in Gupta-related controversies, will no longer be doing audit for municipalities and state-owned entities.

He says he’s picked up certain issues with KPMG over time.

“We’ve asked questions over time, especially if you look at the KPMG matter, it comes from when we made a decision that we’re going to carry on with them and we wanted to understand whether what we did with KPMG International report, was it an alteration or was it a systemic failure that has affected their operations.”

This is the first time the Auditor-General has terminated work with one of the big four auditing firms.

Political analyst Erwin Schwella says that this shows that auditing firms are beginning to be held accountable.

“Accountability is coming to the fore again and in the process, everybody will perhaps learn these lessons and in future we may be better off. We made errors and that then gives us the opportunity to learn how to do things better.”