'Wits cannot continue its relationship with KPMG' Adam Habib

Wits University vice-Chancellor Adam Habib announced that the University was cutting ties with auditing firm KPMG.

This follows an announcement on Tuesday that Munich Re South Africa has resolved to appoint another audit firm come January 2018.

The council that met on the 29th of September resolved that it should conclude its relationship with KPMG for internal auditing and risk management services at the end of 2017 financial year.

Adam Habib, Wits vice-Chancellor

This decision was made after long and hard deliberations. We acknowledge that KPMG did take some actions, including the release of its CEO and other senior partners to mitigate reputational damage.

Adam Habib, Wits vice-Chancellor

But the company did not go far enough, he says.

It was not sufficiently transparent and it is hard to reconcile its conclusion that it did nothing illegal when senior officials are being dismissed and the Sars report has been retracted. Given these considerations, the university cannot continue its relationship with KPMG.

Adam Habib, Wits vice-Chancellor

Habib says they would've preferred KPMG to acknowledge its unethical lapses and embark on a program to correct the wrongs done to certain individuals.

He says PriceWaterCoopers will remain the university's external auditors.

CEO South African Institute of Chartered Accountants (SAICA) Dr Terence Nombembe says currently the truth is not known and they would like KPMG to be given a chance to tell its side of the story.

He says SAICA supports an independent inquiry into the matter so as to uncover the truth.

The investigation is going to give the profession and the justice system an opportunity to know better how to respond to these issues.

Dr. Terence Nombembe, CEO South African Institute of Chartered Accountants

This is not only about KPMG, but about the image of the profession and I think it is important that every profession would reflect and learn from this and make that our process are consistent with what is entrusted upon us.

Dr. Terence Nombembe, CEO South African Institute of Chartered Accountants

To hear the rest of the interview, listen below:

CapeTalk welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the CapeTalk community a safe and welcoming space for all.

CapeTalk reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

CapeTalk is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
KPMG probe could take up to to three years

KPMG probe could take up to to three years

The IRBA says it is looking to fast track the process to 18 months.

LISTEN: Munich Re on its decision to boot KPMG

LISTEN: Munich Re on its decision to boot KPMG

This comes weeks after Dr Iraj Abedian resigned as director, challenging a decision to wait for KPMG's internal investigation.

Yunus Carrim: Parly committee on KPMG not equipped to carry out investigation

Yunus Carrim: Parly committee on KPMG not equipped to carry out investigation

Yunus Carrim, chairperson of Parliament’s Standing Committee on Finance says, the KPMG matter is very complex.

KPMG must die, says Dr Iraj Abedian (after Munich Re dumps it)

KPMG must die, says Dr Iraj Abedian (after Munich Re dumps it)

The Money Show’s Bruce Whitfield interviews Pan-African Investments and Research Services CEO Dr Iraj Abedian.

Sygnia offers Gupta whistle-blower Bianca Goodson a job

Sygnia offers Gupta whistle-blower Bianca Goodson a job

The Money Show’s Bruce Whitfield interviews Sygnia Asset Management CEO Magda Wierzycka.

IRBA to fast track probe into KPMG's Gupta firm audit

IRBA to fast track probe into KPMG's Gupta firm audit

The focus will be on audit of a Gupta-owned company allegedly involved in using public Free State funds to pay for Gupta wedding.

Trevor Manuel talks corporate responsibility in the era of state capture

Trevor Manuel talks corporate responsibility in the era of state capture

Former finance minister Trevor Manuel has asked where the governance is when everybody is involved in the corruption cesspool.

SA loses number 1 ranking (out of 138 countries) for auditing standards

SA loses number 1 ranking (out of 138 countries) for auditing standards

We’re now 30th. Bruce Whitfield interviews Lindie Engelbrecht of South African Institute of Chartered Accountants.

Gigaba files third affidavit against Public Protector

Gigaba files third affidavit against Public Protector

Eyewitness News revealed that the Public Protector's attorneys have withdrawn from the controversial Absa bailout case.

Why SA banks can't fire KPMG

Why SA banks can't fire KPMG

Managing director of SA's Banking Association explains the rules and why the banks still rely on KPMG in this instance.

Popular articles
LISTEN: Gerrie Nel on why he's persuing prosecution against Duduzane Zuma

LISTEN: Gerrie Nel on why he's persuing prosecution against Duduzane Zuma

AfriForum will prosecute Duduzane Zuma after NPA declined to do so in 2015 following a 2014 accident where a woman died.

How we invented the modern concept of sleep

How we invented the modern concept of sleep

Dr Bodhisattva Kar reveals how industrial capitalism influenced the world's current sleep patterns.

Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

Hassen Adams (he brought Burger King and Dunkin’ Donuts to SA) talks money

The Money Show’s Bruce Whitfield interviews Adams about his attitude to money (hopes and fears, successes and failures, etc.).

Kloof Street residents living in fear as crime multiplies

Kloof Street residents living in fear as crime multiplies

A Cape Town man was stabbed to death on Saturday while trying to assist two women who were being mugged on Kloof street.

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

‘I started my thriving business with R5000 (and made a profit in the 1st month)’

After 3 years there are 3 Nic Harry stores (incl online) that sell 100 000 pairs of socks in over 20 countries around the world.