African Rainbow Minerals drops embattled KPMG
Other huge clients that have dumped the company include the Foschini Group, Telkom and Wits University.
Motorvehicles drive past the KPMG Offices on Empire Road in Johannesburg on 15 September 2017. Picture: Yeshiel Panchia
African Rainbow Minerals has joined a string of other companies that have dumped embattled auditing firm KPMG following its involvement with Gupta family and Sars’ rogue unit scandals.
KPMG admitted to some wrongdoing and removed nine senior executives.
The company’s international chairperson has also apologised to South Africans for its conduct.
On Monday, the African Rainbow Minerals said it has noted with concern the questions raised about KPMG’s governance.
“It is extremely important that the behaviour and conduct of our auditing firms continues to justify the respect, trust and confidence that they have earned. After careful consideration, ARM has decided to terminate its relationship with KPMG,” the company said in a statement.
Other huge clients that have dropped the company include the Foschini Group, telecommunications firm Telkom, Wits University, Interwaste Holdings, parliament, MPs’ medical aid fund Parmed, financial services company Sasfin, energy investment firm Hulisani and Nelson Mandela Bay municipality.
The Democratic Alliance announced last month that it would review its contracts with the firm where it governs.
Absa and Investec are also reviewing their contracts with the firm.