Munich Re Africa becomes the latest business to dump KPMG as its auditor. The audit firm has been entangled in a scandal involving friends of President Jacob Zuma, the Gupta family.
CEO of Munich Re South Africa Nico Conradie says this was not a random decision but a thoroughly deliberated matter with the board.
He says it was the board's decision to wait for the outcome of KPMG's internal investigation prior to making any decisions.
KPMG released a report on the 15th of September. With this new information at hand, the board took it to account. After deliberations, we decided to resolve to appoint new auditors as of 2018.— Nico Conradie, CEO of Munich Re South Africa
Munich Re South Africa's decision to drop KPMG comes weeks after economist, Dr Iraj Abedian, took the decision to resign as a director, protesting the board's decision to wait for the outcome of KPMG's internal investigation.
Speaking to CapeTalk's Kieno Kammies, Dr Abedian says he had no doubt in his mind that KPMG was in the wrong and had nothing to wait for before making a decision.
I understand the fact that corporate South Africa had to follow a process but what I do not understand is to wait for KPMG's own report.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
If we had a credible external team doing the investigation I could've said well let's wait but you cannot have KPMG judging it's own conduct. That was my problem and I decided to follow my own values.— Iraj Abidian, Executive Chairman at Pan-African Capital Holdings
Abedian says he applauds Munich Re South Africa for making a right decision but he has taken a decision not to go back to the board.
To hear the rest of the interview, listen below: