Amidst being caught up in an influence-peddling scandal, KPMG South African has appointed Professor Wiseman Nkuhlu, former chairman of the Development Bank of Southern Africa as its chairman.
KPMG South Africa chief executive Nhlamu Dlomu noted that the appointment would bring a huge amount of relevant experience, wisdom to the firm and as well challenge the firm to make the critical decisions required to rebuild.
CEO Dlomu added that “Prof Nkuhlu, as the first black chartered accountant in the country, has dedicated his life and his career to the role of the profession in supporting South Africa’s economic progress and transformation agenda”.
KPMG SA in the last quarter of the previous year accepted the resignation of the former chairman Ahmed Jaffer, CEO Trevor Hoole, COO Steven Louw and five partners amid rising political and public backlash after an internal investigation had found work done for Gupta family below standards.
However, KPMG said its investigation found no evidence of corruption or illegal behavior but identified “work that fell considerably short of KPMG’s standards.”
The global audit firm KPMG, lost clients after it announced a major shakeup in leadership following the internal investigation of its practices as the wealthy Gupta family is at the center of the country’s corruption inquiries with the accusation of using their friendship with President Jacob Zuma to win government contracts.
With the crisis rocking KPMG, the accounting firm has lost its Business Leadership SA membership as it has been suspended by the association. The crisis has also cost KPMG, clients such as Telkcom, Wits University and Standard Bank, amongst others.
Asides KPMG, other global firms to have faced problems due to their work for the Gupta brothers, include business consultancy firm McKinsey and public relations agency Bell Pottinger.