HILARY JOFFE: Media mauls KPMG after spin over VBS
Clients and the public rely on auditors to show probity and judgment and to raise red flags; these auditors clearly failed to do so
When KPMG invited journalists to a hastily called press conference on Sunday, it seemed to think it could spin its way out of the trouble it was in, yet again. Two of its audit partners had resigned on Friday after the firm instituted disciplinary action against them for their conduct and role at failed VBS Mutual Bank. And this happened under the new leadership and new clean-up regime the firm put in place late in 2017 after its reputation was wrecked by its audits for the Guptas and its "rogue unit" report for the South African Revenue Service. In the event, KPMG SA’s newish chairman, Wiseman Nkuhlu, and CEO Nhlamulo Dlomu faced something of a media massacre. Their efforts to steer around the VBS issue and instead highlight all the extraordinary things the firm had done over the past six months to reassure clients and restore public trust simply looked like spin. And their coyness about disclosing any facts, especially about VBS, simply prompted ever-more aggressive questioning.Lu...
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