Patrice Motsepe’s ARM Drops KPMG

Picture: REUTERS

African Rainbow Minerals (ARM) has dropped KPMG as its internal auditors, it announced on Monday.

According to ARM’s chairperson Patrice Motsepe, it “noted with concern the questions raised about KPMG’s governance and ethics compliance, as well as allegations regarding the lawfulness of KPMG’s conduct”.

“The ethics, governance and quality of the South African auditing firms have been globally respected for many years.

“It is extremely important that the behaviour and conduct of our auditing firms continues to justify the respect, trust and confidence that they have earned.

“After careful consideration, ARM has decided to terminate its relationship with KPMG.”

ARM is among many South African firms, including Sygnia, that has cut ties with KPMG.

This follows a report by KPMG International, which criticised the firm’s dealing with Guptas, as well as its work on the SARS investigation unit report.