Consumer group AVI has dropped KPMG SA as its external auditor, joining several other JSE-listed groups that have ditched the auditing firm over its work for the controversial Gupta family and the South African Revenue Service (SARS).
The termination of the contract will take effect by no later than November.
KPMG SA has been AVI’s external auditor since 2002.
Other KPMG clients to announce they are parting ways with the firm include Parliament’s medical scheme, Parmed; financial services firm Sasfin and recently listed Hulisani; asset manager Sygnia; waste manager Interwaste; and reinsurer Munich Re.
Some of SA’s banks have reviewed their relationship with the audit firm, though the Reserve Bank has urged them not to fire KPMG for fear that this could destabilise the sector.
The auditor-general’s said it would continue using KPMG, but in a limited capacity, and would not give it any new work.
With staff writer