Get more Mail & Guardian
Subscribe or Login

KPMG vows to work with Reserve Bank in wake of damning VBS report

KPMG has vowed to work on rebuilding trust in its reputation following the release of the South African Reserve Bank’s (SARB) report into VBS Mutual Bank, the global auditing firm said in a statement on Thursday.

The statement was released on Thursday, acknowledging the outcome of the report.

In the report, released on Wednesday, it is said that KPMG partner Sipho Malaba was aware of nearly R1-billion cash shortage at VBS Mutual Bank, but cleared its financials anyway.

According to the report, Malaba received about R28-million from the exercise. Malaba has since parted ways with KPMG as a partner.

In its statement, KPMG said it recognised the seriousness of the report’s findings and would cooperate with any investigations that emanated from the report.

READ MORE: KPMG exec embroiled in VBS probe

According to the report by Advocate Terry Motau, titled ‘The Great Bank Heist’, Malaba defrauded the South African Reserve Bank, and should be both criminally charged and held liable through civil proceedings.

KPMG executive chairman Wiseman Nkuhlu said the firm would take stock of the investigation and would cooperate with the Reserve Bank, should it be required to do so.

“Lessons have been learned and decisive action has been taken since these matters came to light, and we will study the SARB’s report to see if there is more we can do. There can be no tolerance of any conduct that compromises the quality and integrity of our work,” said Nkuhlu.

READ MORE: KPMG woes deepen after VBS bank scandal

Nkuhlu said KPMG was prepared to perform due diligence in areas that allowed the firm’s public image to suffer.

“I am confident that the extensive remedial changes the firm has already made will enable us to rebuild public and client trust in KPMG, helping us to continue to serve business and society in South Africa,” Nkuhlu said.

KPMG announced last week that its CEO in South Africa, Nhlamulo Dlomu, had vacated the position to assume another position in the firm’s global group. — Fin24

Subscribe to the M&G

Thanks for enjoying the Mail & Guardian, we’re proud of our 36 year history, throughout which we have delivered to readers the most important, unbiased stories in South Africa. Good journalism costs, though, and right from our very first edition we’ve relied on reader subscriptions to protect our independence.

Digital subscribers get access to all of our award-winning journalism, including premium features, as well as exclusive events, newsletters, webinars and the cryptic crossword. Click here to find out how to join them.

Khulekani Magubane
Khulekani Magubane

Khulekani Magubane is a senior financial reporter for Fin24. 

Kyle Cowan
Kyle Cowan

Kyle Cowan is an investigative journalist at News 24.

Related stories

WELCOME TO YOUR M&G

If you’re reading this, you clearly have great taste

If you haven’t already, you can subscribe to the Mail & Guardian for less than the cost of a cup of coffee a week, and get more great reads.

Already a subscriber? Sign in here

Advertising

Subscribers only

Mbeki tells ANC that land without compensation goes against the...

‘This would be a very serious disincentive to investment,’ says Thabo Mbeki in a document arguing that the ANC should not proceed with the Constitutional amendment of section 25

Micro-hydropower lights up an Eastern Cape village

There is hidden potential for small hydropower plants in South Africa

More top stories

Abattoir compliance for game meat will kill Eastern Cape industry,...

Last month, the department of agriculture issued a notice saying that the slaughter and dressing of game meat at any place other than an abattoir was prohibited, and that those not complying could be fined or imprisoned

Gauteng health system is heading for catastrophe

While officials remain entangled in bureaucratic knots, clinicians warn that the continued closure of the Charlotte Maxeke Johannesburg Academic Hospital risks a ‘humanitarian disaster’

Entrepreneurship will save South Africa’s youth

Complaining about ‘reverse racism’ and BEE serves no one. South Africa’s white youth should focus on entrepreneurship instead

Union calls on government to nationalise ‘profit-driven’ Clover

The dairy’s Lichtenburg factory, which is being closed due to service delivery issues, employs about 380 permanent and 40 temporary workers
Advertising

press releases

Loading latest Press Releases…
×