Barclays Africa says will not reappoint KPMG as external auditor

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JOHANNESBURG, May 3 – Banking group Barclays Africa said on Thursday it would no longer consider reappointing troubled KPMG as one of its external auditors.

“Ongoing and more recent developments were evaluated by the board, which decided that it is no longer able to support the re-appointment of KPMG Inc.,” the company said in a statement, alluding to controversies surrounding the auditing firm including its release of a discredited report about a unit at the national revenue service.

“The appointment of KPMG Inc. as external auditor of the group will cease on completion of the statutory and regulatory audit and reporting matters relating to the 2017 financial year, which is expected by approximately 31 May 2018.”

KPMG South Africa said it was disappointed by, but fully accepted the decision

“We are very proud of the work that we have performed for Barclays Africa Group over many years, and of the diligence and professionalism of the team who served them,” it said.

“We have implemented far-reaching changes over the past seven months to all aspects of the firm including governance, quality, and risk management. Work to further underpin the quality of our services and integrity of our professionals continues.”

KPMG firm added that it was taking the right to restore trust in the auditing firm.

KPMG sacked its South African leadership last September last year after it found work done for companies owned by the wealthy Gupta family, which has ties to former president Jacob Zuma, was not up to standard.

– African News Agency (ANA)