Wits University vice-Chancellor Adam Habib announced that the University was cutting ties with auditing firm KPMG.
This follows an announcement on Tuesday that Munich Re South Africa has resolved to appoint another audit firm come January 2018.
The council that met on the 29th of September resolved that it should conclude its relationship with KPMG for internal auditing and risk management services at the end of 2017 financial year.— Adam Habib, Wits vice-Chancellor
This decision was made after long and hard deliberations. We acknowledge that KPMG did take some actions, including the release of its CEO and other senior partners to mitigate reputational damage.— Adam Habib, Wits vice-Chancellor
But the company did not go far enough, he says.
It was not sufficiently transparent and it is hard to reconcile its conclusion that it did nothing illegal when senior officials are being dismissed and the Sars report has been retracted. Given these considerations, the university cannot continue its relationship with KPMG.— Adam Habib, Wits vice-Chancellor
Habib says they would've preferred KPMG to acknowledge its unethical lapses and embark on a program to correct the wrongs done to certain individuals.
He says PriceWaterCoopers will remain the university's external auditors.
CEO South African Institute of Chartered Accountants (SAICA) Dr Terence Nombembe says currently the truth is not known and they would like KPMG to be given a chance to tell its side of the story.
He says SAICA supports an independent inquiry into the matter so as to uncover the truth.
The investigation is going to give the profession and the justice system an opportunity to know better how to respond to these issues.— Dr. Terence Nombembe, CEO South African Institute of Chartered Accountants
This is not only about KPMG, but about the image of the profession and I think it is important that every profession would reflect and learn from this and make that our process are consistent with what is entrusted upon us.— Dr. Terence Nombembe, CEO South African Institute of Chartered Accountants
To hear the rest of the interview, listen below:
This article first appeared on CapeTalk : 'Wits cannot continue its relationship with KPMG' Adam Habib