We are not firing KPMG as auditor … yet, Nedbank says
Nedbank says it cannot change auditors without consent of its parent, Old Mutual, which is in the process of reducing its stake to under 20%
Nedbank will not follow Absa’s suit at its annual general meeting (AGM) next week by firing Gupta family scandal-tainted KPMG.
Nedbank issued a statement on Thursday saying it would ask shareholders to reappoint KPMG as its joint auditors at its AGM on May 10.
This followed a statement from Absa’s JSE-listed holding company, Barclays Africa Group, on Thursday morning, saying it had decided to fire KPMG. A resolution to reappoint KPMG as a joint auditor that was to have been voted on at its AGM on May 15 was thus scrapped.
Nedbank said it could not change auditors without the consent of its parent, Old Mutual. The insurance group is in the process of reducing its holding in the bank to about 20%.
"At Old Mutual’s recent AGM on April 30, 96.31% of shareholders supported a resolution to reappoint KPMG for the 2018 financial year. Old Mutual’s proposed managed separation process and timelines would be placed at significant risk if the external audit function was disrupted at this stage," Nedbank said in the statement.
Nedbank said it would ask its shareholders to approve KPMG along with Deloitte as its joint external auditors, at its AGM next Thursday.
Banks are required to have two auditors by the South African Reserve Bank. Absa said EY would be its sole auditor for a brief period while it selected KPMG’s replacement.