KPMG client GE faces criminal probe over accounting practices

By Felicity Duncan

Venerable American industrial conglomerate (and KPMG client) GE reported some dismal news on Tuesday. It slashed its dividend to just 1c per share (from 12c) and announced that it is the target of a criminal probe by the US Justice Department over its accounting practices.

Perhaps coincidentally, GE faced a shareholder motion earlier this year trying to unseat its long-time auditor KPMG. After the SEC launched an earlier investigation into GE's accounting practices, shareholders expressed concern that perhaps the company's relationship with KPMG – its auditor for the last 110 years – may be a little too cosy. The brought a motion to unseat KPMG, which was defeated at the AGM.

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