KPMG bosses in denial about damage caused to credibility and trust - economist
Economist Dr Iraj Abedian says that senior executives at KPMG remain in denial that there has been a breach of ethics by the firm.
Abedian says his decision to it was an ethical decision to step down from Munich Re of Africa (MRoA)'s board, over their continued involvement with disgraced audit firm.
Abedian says he made the call after two months of ongoing engagement with MRoA.
KMPG was allegedly involved in syphoning taxpayer's money to pay for a lavish Gupta family wedding at Sun City.
Abedian says it is problematic for companies to associate with auditors who face reputational risk.
Last week, the Institute of Directors has temporarily suspended all co-branded activities with KPMG.
Corruption Watch executive director David Lewis says the auditing firm must be held accountable, along with other private sector firms implicated in state capture and corruption.
Lewis adds that the role of consultancy firm McKinsey must also be investigated and says pressure must be put on the Hawks and NPA to act.
He explains that KPMG has lot the trust of many companies and
Lewis and Abedian concur that more companies must distance themselves from KPMG or face being associated with organised crime.
Take a listen to them discuss the important role of corporate accountability: