JOHANNESBURG — It’s been just over a year since KPMG’s former CEO Trevor Hoole and other executives quit amid the Zupta saga that struck the auditing firm in South Africa. Nhlamulo Dlomu, an HR professional by background, took over the reins at KPMG SA. But she hasn’t lasted long in the top job. And reports that the company continues to bleed clients has piled further pressure on the firm. Now, KPMG International is looking to bring a new CEO, preferably somebody from outside of SA. Will that be enough to save the Gupta-cursed firm though? – Gareth van Zyl
Press statement from KPMG:
KPMG South Africa today announces that Chief Executive Officer, Ms Nhlamulo Dlomu, will be taking up a new global role focusing on organisational culture change and ethical leadership.
She will work with Bill Thomas, KPMG’s Global Chairman, and the Global Management Team in executing on the firm’s global strategic priorities.
Given the scale of the reputational challenges facing both KPMG and the industry, the Board has decided that a new chief executive from outside the firm, with strong industry experience, will optimise prospects of rebuilding trust.
A search to identify a successor is well advanced. In the interim, Professor Wiseman Nkuhlu will serve as Executive Chairman.
Ms Dlomu commented:
“It has been a huge privilege to lead KPMG this past year. Although it has been challenging, we have managed to stabilise the business. This would not have been achieved without the loyalty of our clients, the commitment of KPMG partners and staff, as well as the invaluable input of the business community, civil society and the larger South African public. I look forward to sharing the South African experience with the global body of KPMG, and I’m pleased to be able to continue to support the firm during the transition.
KPMG South Africa Chairman, Professor Wiseman Nkuhlu, commented:
“We are all indebted to Nhlamu for her exceptional contribution to the rebuilding of KPMG in South Africa over the past year. She displayed courage, integrity and sound judgment at a time of great challenge. She helped rebuild the foundations of the firm’s reputation and refocused it as a purpose driven organisation more aligned to the public interest. I know that KPMG International will benefit tremendously from her considerable personal and professional skills.
We have, under Nhlamu’s leadership, already taken many steps to improve the firm, and we need to do more. The challenges facing our industry have grown and we are focused on appointing a candidate who will help further restore confidence in KPMG in this changed environment. I have great faith in the strengths of KPMG and our ability to play a positive role in South Africa.”
KPMG South Africa seeks CEO from outside firm to rebuild trust
(Bloomberg) — KPMG South Africa is seeking a chief executive officer from outside the auditing firm to rebuild trust after becoming embroiled in a series of scandals that cost the organization a number of high-profile clients.
Current CEO Nhlamulo Dlomu will be taking up a new global role focusing on organizational culture change and ethical leadership, where she will be working with KPMG’s Global Chairman Bill Thomas, the Johannesburg-based company said in an emailed statement. In the interim, Wiseman Nkuhlu will serve as executive chairman.
“Given the scale of the reputational challenges facing both KPMG and the industry, the board has decided that a new chief executive from outside the firm, with strong industry experience, will optimize prospects of rebuilding trust,” KPMG South Africa said. “A search to identify a successor is well advanced.”
The company is being investigated by two auditing bodies in the country over work for entities linked to the Gupta family, who have been accused of using their friendship with former President Jacob Zuma to siphon off state funds. The company was also forced to withdraw the findings of a report it compiled for South Africa’s tax agency that was used as evidence in a police probe against former Finance Minister Pravin Gordhan.
