Disir
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- Sep 30, 2011
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JOHANNESBURG (Reuters) - South Africa’s central bank has told top lenders they cannot fire auditor KPMG [KPMG.UL], entangled in a scandal involving friends of President Jacob Zuma, because it might undermine financial stability, two sources with knowledge of the matter said.
KPMG sacked its South African leadership two weeks ago after it found work the accounting firm had done for companies owned by the Gupta family “fell considerably short” of its standards.
KPMG has said it will ask a senior legal figure to conduct an external investigation into whether its South Africa-based workers were complicit in illegal activities or colluded in producing a report that has since been discredited.
The scandal has raised questions about the survival of the local unit of KPMG, after it lost at least four clients.
A number of blue-chip companies, including Barclays Africa (BGAJ.J) and Nedbank (NEDJ.J), have publicly said they are considering dropping one of the biggest names in accounting.
But the prospect of the local unit of KPMG going under has rattled the South African Reserve Bank [SAFRB.UL] because it is one of only four auditors with enough depth to jointly audit the four largest banks.
Exclusive: South Africa's central bank tells lenders that KPMG is 'too big to fail'
Nah. Heard that before. Let that fall to the wayside.
KPMG sacked its South African leadership two weeks ago after it found work the accounting firm had done for companies owned by the Gupta family “fell considerably short” of its standards.
KPMG has said it will ask a senior legal figure to conduct an external investigation into whether its South Africa-based workers were complicit in illegal activities or colluded in producing a report that has since been discredited.
The scandal has raised questions about the survival of the local unit of KPMG, after it lost at least four clients.
A number of blue-chip companies, including Barclays Africa (BGAJ.J) and Nedbank (NEDJ.J), have publicly said they are considering dropping one of the biggest names in accounting.
But the prospect of the local unit of KPMG going under has rattled the South African Reserve Bank [SAFRB.UL] because it is one of only four auditors with enough depth to jointly audit the four largest banks.
Exclusive: South Africa's central bank tells lenders that KPMG is 'too big to fail'
Nah. Heard that before. Let that fall to the wayside.
