Curtains seems to be almost down for KPMG in south Africa as the World’s renowned auditing firm finds itself in a struggling situation after the withdrawal of SARS “Rogue” unit report. While the firm is still finding it hard to acquire any more business in the country, its existing clientele base is also getting away amidst the questions raised around over the authenticity of the firm. The Most recent addition to the list is the University of the Witwatersrand (Wits) ,which has now decided not to renew contracts with KPMG South Africa for internal auditing and risk management services whilst its contract with the firm expires at the end of the financial year 2017.
As per the official statement released by the university, it’s been said that though KPMG did take some actions, which includes releasing the CEO, COO and a number of senior partner’s news to compensate the reputation damage occurred as a result of its relationship with Gupta associated companies and its involvement in the SARS report, but felt that it had not gone far enough to do the requisites.
Moreover in the words of WITS spokesperson Erna Wan Wyk, “Further, it was agreed that KPMG had not been sufficiently transparent and that it is hard to reconcile KPMG’s conclusion that no one did anything illegal, when senior individuals have been dismissed and the SARS report has been retracted. In these circumstances, the Council believes that it would have been prudent to acknowledge the ethical and legal lapses of KPMG’s senior management team.”
“Also, the company should have embarked on programmes to correct the wrongs that have been done to individuals and institutions. The Council also believes that an independent investigation should have been initiated at the outset. Audit firm PWC will remain the university’s external auditors “She further added.
While the statement came as another huge blow to KPMG’s battle for survival in the country, it can be said that the Firm has already lose its reputation amongst the masses and with reports coming around of it acting as a puppet of WMC boss in the SARS report Saga, the future seems to be uncertain to its business entity in not only south Africa but other parts of the world as well.