BREAKING: Hulisani Drops KPMG Due To Reputational Risk

Picture: REUTERS

Energy investment company Hulisani Ltd plans to drop KPMG as its auditor, citing reputational risk, its chief executive said on Tuesday.

“The risk committee looked at various factors, including what’s in the media now about KPMG and the Guptas and we concluded that it would be in best interests of the company to change auditors,” Chief Executive Marubini Raphulu told Reuters.

KPMG cleared out its South African leadership en masse on Friday after a damning internal investigation into work the firm did for the Guptas. 

Meanwhile, Sasfin has earlier on Tuesday announced that it has dropped KPMG as its JSE sponsor as well as its auditor after 18 years over concerns over good governance.

Sasfin will be changing its independent sponsor from KPMG Services to Deloitte & Touche Sponsor Services from Tuesday, it said.

“This decision was made to ensure a separation of the role of external joint auditor to the Sasfin Holdings Limited Group with that of independent sponsor.”

It said KPMG and Grant Thornton have been joint auditors of Sasfin for 18 and 30 years respectively.  

“In view of the well-publicised concerns recently raised with regard to KPMG as well as Sasfin’s commitment to good governance in respect of auditor independence and auditor tenure, Sasfin has decided to put its audit out to tender,” it said.

Sasfin said this process is expected to begin in November 2017.