VBS report throws KPMG back in dock
The firm faces claims for millions after Reserve Bank says a former partner signed off falsified audits
KPMG, the auditing firm whose reputation was gutted by associations with the Gupta family and a flawed report that helped weaken the SA Revenue Service (Sars) amid state capture allegations, is in the dock again. The company, which last week replaced the CEO who was appointed just a year ago to repair its reputation, is facing claims for millions of rand after a SA Reserve Bank report into the collapse of VBS Mutual Bank found its former partner had signed off falsified audits. In one of the country’s biggest banking scandals, the bank collapsed amid allegations that its executives looted almost R2bn they were supposed to look after on behalf of municipalities, stokvels and the elderly in Limpopo. The scandal-scarred KPMG has lost high-profile clients in the past year, including the auditor-general, the Gauteng government and the SA arm of German insurer Munich Re. The Bank placed VBS into curatorship in March after withdrawals by municipalities — who are legally barred from deposit...
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