JOHANNESBURG– International professional services firm KPMG says it will continue its own internal and independent investigations against two partners who resigned last week amidst reports of accounting irregularities related to VBS Mutual Bank, which has been placed under curatorship by the central bank to protect depositors.
The two partners of VBS Mutual Bank, S. Sipho Malaba and Dumi Tshuma, tendered their resignation after facing disciplinary charges that the firm brought against them. They had signed off on the VBS accounts and failed to report the existence of 900 million Rand (about 74.7 million US dollars) in deposits related to fraudulent transactions.
KPMG South Africa Chief Executive Officer Nhlamu Dlomu told the media here Monday that she was deeply disappointed with the VBS matter. She said KPMG, one of the “Big Four” international accounting firms, had taken measures to restore the reputation of the firm.
The audit firm said it had already taken significant measures to change its image, including changes to governance and leadership and had also expanded its process of integrity by doing background checks on all partners and their spouses. In addition, KPMG is implementing a speak-up programme to help with whistle-blowing.
Meanwhile, the South African Parliament’s Standing Committee on Public Accounts (Scopa) wants KPMG to be transparent in how it deals with all staff members implicated in wrong-doing.
On Sunday, the firm announced its decision to review all its work completed over the last 18 months to maintain the trust and integrity of the organization. KPMG’s reputation was tarnished by a report done for the South African Revenue Service (SARS) into claims of a so-called rogue unit, which has since been largely discredited.
Source: NAM NEWS NETWORK