Panic. That is how KPMG employees described the situation at the country's fourth- largest audit firm this week. The latest fears were stoked by the office of the auditor-general, which pulled the plug on KPMG's audit contracts on Monday. Employees are now faced with the real prospect of retrenchment. It is understood there has already been a steady exodus of staff since signs of trouble in the audit firm, linked to Gupta accounts, emerged last year. Former KPMG employees told Business Times that morale was at an all-time low and that it was "panic as usual". Auditor-General Kimi Makwetu said the decision to terminate contracts was based on concerns over breaches of professional competence, independence and ethics. Two KPMG partners, Sipho Malaba and Dumi Tshuma, who are facing disciplinary charges relating to their audits of VBS Bank — placed under curatorship last month — resigned recently. The pair failed to disclose loans they held with VBS Bank. One source said while nothing ha...
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