OUTSIDE VIEW
FERIAL HAFFAJEE: The heartbreaking collapse of a pioneering black audit firm
Lessons of lapses in corporate governance still being tallied but meaning of Nkonki is more layered than other examples
There's a lot that the Gupta family lieutenant Salim Essa has to answer for - but the most heartbreaking must be the collapse of auditing firm Nkonki this week. On Sunday Nkonki Inc announced it was going into voluntary liquidation after auditor-general Kimi Makwetu said last week that it and KPMG would no longer work for his office. Essa's involvement is a convoluted story: in a nutshell, he connived with an Nkonki partner to position Nkonki as an accomplice to the Gupta empire by giving its various shady deals the stamp of auditor approval. The investigative hub amaBhungane has revealed the anatomy of this audit capture and Makwetu came down heavily on the company. Most of Nkonki's work is in the public sector, so it cannot survive. Although the impact on offices affiliated to Nkonki Inc is unclear at this stage. About 180 staff will be without work as the firm winds up operations, but what is truly devastating is that Nkonki always had meaning beyond an auditing and advisory firm...
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