• Register
Return to: Home > News > Financial Results > KPMG South Africa continues to lose staff and clients

KPMG South Africa continues to lose staff and clients

KPMG has continued to lose both clients and staff following the controversy surrounding the work the firm conducted for the Gupta family, according to reports from South Africa.

A team which is responsible for US cross-border transactions in Africa has quit due to a lack of workflow since the firm was allegedly involved with Gupta family corruption scandal last year which saw the family’s companies syphon public money to fund a family wedding, according to reports.

Dimension Data Holdings became the latest of a range of clients to leave the firm and has instead chose EY as its auditor.

The IT systems integrator and service provider’s chief financial officer Dave Sherriffs told Bloomberg: “In the light of recent incidents relating to KPMG South Africa, Dimension Data recently informed KPMG of its intention to terminate its services.”

Since the Gupta scandal first emerged last year, KPMG South Africa has seen its reputation tarnished, an exodus of staff, a ban from public sector auditing in South Africa, and the loss of Barclays Africa Group as its client, which is one of the largest banking groups in the region.

The severity of the reputational damage that KPMG has faced over the last year or so presents an uncertain future for the firm in South Africa. The South African Independent Regulatory Board chief executive Bernard Agulhas told IAB in August: “We do not know at this stage if KPMG will disappear completely, but certainly it has had to downscale; its operations clearly needed to downscale because it had lost quite a few clients and quite a few staff members.”

In KPMG South Africa’s Baseline Report 2018, KPMG South Africa CEO Nhlamulo Dlomu said: “It is important to highlight that we are, and will continue to be, a business of scale. Over the recent months we have had regrettable staff and client losses but the large majority of our clients have stayed with us.

“Similarly, although there has been increased levels of staff attrition, many of our colleagues have made the conscious decision to stay with KPMG South Africa because they want to play an active part in the future of the firm and to serve the wider business community.”

The International Accounting Bulletin approached KPMG for comment but did not receive a response by the time of publication.

Top Content

    MSI joins AGN and DFK in Global Connect

    A year after AGN International and DFK International launched Global Connect, multi-disciplinary association MSI has joined the group.

    read more

    Views from the Eurozone

    With Brexit looming, populist governments gaining footholds in a number of countries and movements such as the Yellow Jacket protests in France, 2018 was anything but a quite year for the eurozone. Here leaders report to the IAB on their markets.

    read more

    Eastern promise and how to find it

    With China rising as a global power, Jonathan Minter spoke with ShineWing’s Zhang Ke and Marco Carlei at the World Congress of Accountants 2018 in Sydney, to discuss the cultural challenges that occur when Chinese networks look beyond their border, and the dividends available for those who overcome them.

    read more

    The UK: uncertain waves rule Britannia

    The UK’s accountancy profession is currently in a period of much uncertainty. The Competition and Markets Authority (CMA) has released its review into the listed audit market which could cause the biggest shake-up the profession has seen in years, the Kingman Review has described the Financial Reporting Council (FRC) as not being fit for purpose and called for it to be replaced. All the while the country remains in a deadlock on Brexit negotiations.

    read more
Privacy Policy

We have updated our privacy policy. In the latest update it explains what cookies are and how we use them on our site. To learn more about cookies and their benefits, please view our privacy policy. Please be aware that parts of this site will not function correctly if you disable cookies. By continuing to use this site, you consent to our use of cookies in accordance with our privacy policy unless you have disabled them.