Auditing company KPMG has come under fire once again, this time over VBS Bank. This, after the auditing firm, suspended Sipho Malaba, head of financial services auditing, one of its largest units.
Malaba was tasked to run the auditing firm's largest business unit, which is the financial services auditing unit in October 2017. This is when the embattled firm announced its new executive team.
The Reserve Bank says R900 million of the bank's reported deposits of R2.9 billion cannot be accounted for. Questions are being raised as to why was this not picked up by the auditors.
Speaking to Ray White on The Midday Report, economist, Professor Bonke Dumisa said if there was transparency, and people were applying their minds to what was happening with VBS Bank over the past few years, they should have picked up all these issues.
When the Reserve Bank finally made a Sunday announcement that they were putting VBS Bank under curatorship, it was because there had been a string of some of these problems and we had not heard anything about these issues...How can you have a bank that is a mutual bank, taking deposits from municipalities - and external auditors don't pick those things up?— Professor Bonke Dumisa, economist
He says he is not surprised that KPMG has acted fast this time, as in the past when allegations of this stature were made against them, they were slow to respond.
Listen below to the full interview:
This article first appeared on 702 : 'Not surprising KPMG acted quickly this time and suspended Sipho Malaba'