PARTNERS RESIGN
KPMG woes deepen on VBS scandal
KPMG will face renewed pressure from its banking clients after it emerged that the two partners who quit the firm at the weekend — facing disciplinary charges relating to its audit of failed VBS Mutual Bank — both also worked on the audits of large commercial banks. Partners Sipho Malaba and Dumi Tshuma resigned on Friday when faced with disciplinary charges brought against them relating to their failure to disclose "relevant financial interests" in VBS Mutual Bank, KPMG said. "They were both on big bank audits," CEO Nhlamulo Dlomu said on Sunday at the firm’s Johannesburg headquarters. KPMG, which audited Investec, Nedbank, Standard Bank and Barclays Africa, would review the quality of the work done for these banks, she said. Malaba had failed to disclose loans held with VBS, which was placed into curatorship in March and is now the subject of a Reserve Bank-instituted forensic investigation. Employees were required to disclose where they held loans with financial institutions, sai...
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