The auditor-general’s decision to terminate auditing contracts with KPMG will see the embattled audit firm excluded from doing any work for the country’s most valuable client.
The auditor-general has control over auditing contracts that dwarf even the largest private-sector business.
This is the first time it has terminated work with one of the big four audit firms. Also terminated is black-owned Nkonki‚ which has been implicated in Gupta-related controversies.
The auditor-general’s decision is expected to influence other KPMG clients who have opted to stay with the firm despite the barrage of bad publicity over the past year.
"This decision cuts KPMG off from a massive income stream as the government is by far the largest and most valuable customer for audit firms‚" a former government auditor told Business Day.
The work covers every sphere of government‚ from municipal to local and provincial. It also includes every government department and state-owned entity.
- Business Day
Just R20 for the first month. Support independent journalism by subscribing to our digital news package. 