Deloitte ignored African Bank’s inflated loan book, says regulator
Irba charged two Deloitte partners, Mgcinisihlalo Jordan and Danie Crowther, in March with misconduct
African Bank auditor Deloitte knew four years before the collapse of the unsecured lender that it was incorrectly calculating impairments in its loan book. The result was that the bank overstated the size of its loan book and understated impairment charges by billions. This is what the disciplinary committee looking into Deloitte’s role in the bank’s collapse in 2014 heard from the investigator appointed by the Independent Regulatory Board for Auditors (Irba). “The issue had been identified as a risk all of those years ago, but nothing had been done to respond to that,” said Irba’s investigator, adding that Deloitte had never dealt with the risks when it identified them at African Bank. Irba would not disclose his identity for fear of victimisation. Thursday’s hearing came after Irba charged two Deloitte partners, Mgcinisihlalo Jordan and Danie Crowther in March with misconduct.
Jordan is facing 10 charges, while one charge has been levelled against Crowther. Deloitte has prev...