Cold comfort for KPMG
A second KPMG partner faces a probe by the Independent Regulatory Board for Auditors over a loan from VBS Mutual Bank
As clouds gather afresh over KPMG, it may draw comfort from the fact that the two audit partners who appear to have landed the firm in yet another fine mess are both facing personal investigations by the audit regulator.The Independent Regulatory Board for Auditors (Irba) told the Financial Mail this week that it has issued an investigation letter to a second KPMG audit partner, Dumi Tshuma, "following disclosures by KPMG over the weekend".This follows an announcement that it had launched an investigation into the role of Sipho Malaba, KPMG’s lead partner on VBS Mutual Bank, as part of a probe into the audit of the distressed bank.Malaba and Tshuma failed to disclose loans they held with VBS, which is a professional requirement. Both partners immediately resigned when the firm confronted them with disciplinary charges.Fortunately, their resignations do not affect Irba’s ability to proceed with an investigation, says CEO Bernard Agulhas. "The investigation is into the individual audi...
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