South African arm of global auditing firm, KPMG, on Wednesday, 3 October 2018 said it was looking for an external Chief Executive Officer to restore its reputation after a corruption scandal involving the Gupta brothers made the company lose several major clients.
According to KPMG South Africa, “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.”
Following an audit done for a company owned by the scandal-plagued Gupta family, friends of South Africa’s former president, Jacob Zuma, KPMG suffered a mass exodus of clients, including the Auditor General of South Africa, Wits University, ABSA bank, financial service provider- Sasfin and re-insurer Munch Re and clothing retailer Foschini.
During the crises period, KPMG South Africa cut jobs and shut regional offices after South Africa’s auditor general, Thembekile Kimi Makwetu said the country would terminate all government contracts with the firm.
In 2017, Nhlamulo Dlomu took over from Trevor Hoole as KPMG South Africa’s Chief Executive after he and several others in management stepped down following KPMG’s announcement that the conclusions of its report could not be relied upon.
With the new restructuring which will see Dlomu step down as CEO, she will take on a new ethical leadership and organisational culture change role while working hand in gloves with Bill Thomas, KPMG Global chairperson and the global management team.
Pending when an external Chief executive is found, the company’s Chairman Wiseman Nkuhlu will serve as interim executive chair.