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JOHANNESBURG — Levels of trust continue to plummet for KPMG South Africa as Old Mutual has decided, for the first time in 19 years, to hire a second auditor in the form of Deloitte. It’s a major body blow for KPMG as bigger corporates out there clearly don’t trust KPMG any longer. KPMG’s fee will also be dramatically cut, according to the Financial Times – a bad omen for a firm that already had to slash 400 jobs from its payroll. This short statement from Old Mutual says it all. – Gareth van Zyl
Statement from Old Mutual:
“Old Mutual has been continuously engaging with KPMG International and KPMG South Africa on concerns regarding the ongoing challenges raised in their South Africa business. KPMG has noted and discussed with us clear actions to address these challenges. Until these challenges are resolved, Old Mutual believes it is prudent to appoint a joint auditor.”