LISTEN: Munich Re on its decision to boot KPMG

Munich Re Africa becomes the latest business to dump KPMG as its auditor. The audit firm has been entangled in a scandal involving friends of President Jacob Zuma, the Gupta family.

CEO of Munich Re South Africa Nico Conradie says this was not a random decision but a thoroughly deliberated matter with the board.

He says it was the board's decision to wait for the outcome of KPMG's internal investigation prior to making any decisions.

KPMG released a report on the 15th of September. With this new information at hand, the board took it to account. After deliberations, we decided to resolve to appoint new auditors as of 2018.

Nico Conradie, CEO of Munich Re South Africa

Munich Re South Africa's decision to drop KPMG comes weeks after economist, Dr Iraj Abedian, took the decision to resign as a director, protesting the board's decision to wait for the outcome of KPMG's internal investigation.

Speaking to CapeTalk's Kieno Kammies, Dr Abedian says he had no doubt in his mind that KPMG was in the wrong and had nothing to wait for before making a decision.

I understand the fact that corporate South Africa had to follow a process but what I do not understand is to wait for KPMG's own report.

Iraj Abidian, Executive Chairman at Pan-African Capital Holdings

If we had a credible external team doing the investigation I could've said well let's wait but you cannot have KPMG judging it's own conduct. That was my problem and I decided to follow my own values.

Iraj Abidian, Executive Chairman at Pan-African Capital Holdings

Abedian says he applauds Munich Re South Africa for making a right decision but he has taken a decision not to go back to the board.

To hear the rest of the interview, listen below:


This article first appeared on CapeTalk : LISTEN: Munich Re on its decision to boot KPMG


Recommended

by NEWSROOM AI
Read More
Yunus Carrim: Parly committee on KPMG not equipped to carry out investigation

Yunus Carrim: Parly committee on KPMG not equipped to carry out investigation

Yunus Carrim, chairperson of Parliament’s Standing Committee on Finance says, the KPMG matter is very complex.

KPMG must die, says Dr Iraj Abedian (after Munich Re dumps it)

KPMG must die, says Dr Iraj Abedian (after Munich Re dumps it)

The Money Show’s Bruce Whitfield interviews Pan-African Investments and Research Services CEO Dr Iraj Abedian.

Sygnia offers Gupta whistle-blower Bianca Goodson a job

Sygnia offers Gupta whistle-blower Bianca Goodson a job

The Money Show’s Bruce Whitfield interviews Sygnia Asset Management CEO Magda Wierzycka.

IRBA to fast track probe into KPMG's Gupta firm audit

IRBA to fast track probe into KPMG's Gupta firm audit

The focus will be on audit of a Gupta-owned company allegedly involved in using public Free State funds to pay for Gupta wedding.

Trevor Manuel talks corporate responsibility in the era of state capture

Trevor Manuel talks corporate responsibility in the era of state capture

Former finance minister Trevor Manuel has asked where the governance is when everybody is involved in the corruption cesspool.

SA loses number 1 ranking (out of 138 countries) for auditing standards

SA loses number 1 ranking (out of 138 countries) for auditing standards

We’re now 30th. Bruce Whitfield interviews Lindie Engelbrecht of South African Institute of Chartered Accountants.

KPMG shunned by some clients after Gupta ties emerge

KPMG shunned by some clients after Gupta ties emerge

CEO of Pan-African Investment, Dr Iraj Abedian, resigned from the board of Munich Re Africa because it would not fire KPMG.

KPMG bosses in denial about damage caused to credibility and trust - economist

KPMG bosses in denial about damage caused to credibility and trust - economist

Economist Dr Iraj Abedian says it is problematic for companies to associate with auditors who face reputational risk.

Popular articles
[LISTEN] DA MP Glynnis Breytenbach withdraws her candidacy for NDPP post

[LISTEN] DA MP Glynnis Breytenbach withdraws her candidacy for NDPP post

Breytenbach was one of 12 candidates shortlisted for the position.

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

SA is falling in love with Telkom Mobile (6.5m users, 50% up on 6 months ago)

The Money Show’s Bruce Whitfield interviews Telkom Group CEO Sipho Maseko.

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

Self-driving Merc returns to Chapman’s Peak to beat the bends in stirring new ad

The Money Show’s Bruce Whitfield interviews branding and advertising expert Andy Rice about Merc's stirring new ad.

Former state security boss Mo Shaik on why minister is revetting spies

Former state security boss Mo Shaik on why minister is revetting spies

State Security Minister, Dipuo Letsatsi-Duba, has announced that all agents and staff of SSA will be re-vetted.

'I don’t spend much. I drive an old car. I’ve never been in debt'

'I don’t spend much. I drive an old car. I’ve never been in debt'

Bruce Whitfield interviews analyst Chris Gilmour about his attitude toward money (hopes and fears, successes and failures, etc.).

[LISTEN] Steinhoff explained: 100 times more looted in Steinhoff saga than VBS

[LISTEN] Steinhoff explained: 100 times more looted in Steinhoff saga than VBS

Steinhoff’s Web of Deception: An Explainer with Financial Mail journalist Warren Thompson.