KPMGs newly appointed CEO Nhlamulo Dlomu has given her word that the auditing firm will deal with an independent inquiry openly and honestly.
JOHANNESBURG – Embattled auditing firm KPMG South Africa on Monday announced a new executive team in a bid to restore public trust.
Last month, KPMG’s top eight executives, including chief executive Trevor Hoole, resigned following a storm created by work the firm did for the South African Revenue Service (SARS) and the Gupta family.
The firm has been losing clients on a daily basis since it recalled the SARS “rogue unit” report and it is being investigated by the Independent Regulatory Board for Auditors (IRBA).
A host of companies and institutions dropped KPMG as auditors following the revelations, including Wits University, Munich Re Africa, Parliament's medical aid fund, and Sasfin.
Nhlamu Dlomu, KPMG South Africa’s new chief executive, announced “a strong and experienced team” of partners to lead the firm.
Gary Pickering, an experienced and respected chartered accountant and audit partner will lead KPMG audit practice. Pickering was the lead or engagement partner of several of the firm's major clients in the financial services sector.
Sipho Malaba, also a chartered accountant, will continue as the executive team member responsible for KPMG’s largest business unit, financial services audit. In addition, Malaba will lead the firm’s strategic projects.
Granville Smith will lead the company's advisory practice and Joubert Botha, currently the chief operating officer for tax will serve as interim leader for that part of the business.
Modise Maseng will lead public sector work while Makgotso Letsitsi will be the leader for KPMG People.
All three functions of the business, audit, tax and advisory will be supported by the markets team which will be led by Nosisa Fubu.
Andrew Cranston, an experienced partner, has been appointed as the interim Chief Operating Officer.
“This is day one for the new KPMG, a KPMG where public interest will share an equally important role with enhanced governance, quality and ethics. We understand that the immediate road ahead will be challenging, but I believe the individuals in this team have the necessary skill, experience, passion and energy to lead KPMG to, once again, be a standard setter in the profession,” Dlomu said.
“This is an experienced, talented and diverse leadership team that has the right skills as well as the determination, to rebuild KPMG.”
Dlomu also said they had allocated a full-time executive position to the head of risk to manage client acceptance and retention within the firm as part of KPMG South Africa’s action plans to improve governance and risk management.
That role will be filled by Brian Stephens, a South African who is a former partner of KPMG’s US member firm, Dlomu said.