Embattled KPMG SA is reviewing its business model and will be assessing how large it needs to be and how long it will take to rebuild its business, now that it is losing some of its biggest clients.
This comes after the firm continued to bleed clients on Friday, with mining company Sibanye Gold and property group Redefine announcing that they would terminate their auditing contracts with KPMG.
The firm’s future was already unclear after it lost its largest private-sector audit client, Barclays Africa, last week, and auditor-general Kimi Makwetu cancelled its government auditing contracts in April.
And with more annual general meetings of listed companies coming up in the next few weeks, the firm could lose more clients.
KPMG SA’s CEO, Nhlamu Dlomu, said in an interview on Sunday that KPMG had already started looking at what sort of model would be appropriate for the type of firm it wanted to build in the future. "We have a number of clients who are holding their AGMs in this month [May] and we have to be realistic about the size of the business that’s left so that we can appropriately deal with it," she said.
If you are already a subscriber, please click on the following link below to go to the full article: Bleeding KPMG SA rethinks its future
* This article was amended to indicate that Redefine had terminated its auditing contracts with KPMG and not Resilient as suggested in the initial version of the story. Resilient is not audited by KPMG.