CORPORATE GOVERNANCE
Nedbank to review KPMG status after spin-off
Nedbank says it will review its relationship with KPMG in the 2019 financial year, once the bank’s separation from its parent, Old Mutual plc, is complete. "It remains important to complete managed separation with the same auditors as Old Mutual Limited/Old Mutual plc," Nedbank CE Mike Brown said on Monday. This, coupled with the need for Reserve Bank guidance on how mandatory audit-firm rotation would work for banks with joint auditors, as well as clarity on Companies Act constraints on the extent to which the same firm could provide audit and advisory services to clients, meant it was not in the interests of stakeholders for Nedbank to change auditors at this stage, Brown said. "We will review our position" in 2019, he said. KPMG risks losing the business of large banks after it emerged that one of its audit partners, Sipho Malaba, who was the lead engagement partner on Nedbank and VBS Mutual Bank, did not disclose loans held with VBS, in contravention of company policy. VBS was p...
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