Cape Town – Being associated with KPMG amid the Gupta and SARS scandals, played a significant role in TYV’s decision to part ways with the firm after almost two decades together, TYV Financial Service Pty Ltd CEO Thabelo T Mukwevho told Media briefing on Wednesday.
TYV Financials Service on Tuesday announced that it has dropped KPMG as its auditor after 3 years of service over concerns over good governance stemming from the Gupta saga and its fumble on the SARS “rogue unit” report.
TYV Financials Service will be changing its independent Auditor from KPMG Services to Deloitte from Tuesday, it said.
TYV Financials Service is the second corporate to cut ties with KPMG after fintech company Sygnia terminated KPMG’s services in July.
The Institute of Directors in Southern Africa has also suspended co-branding activities with KPMG, including sponsorship of its golf day.
TYV Financials Service said its decision was made to ensure a separation of the role of external joint auditor to the TYV Financial Service PTY LTD with that of independent sponsor.
It said KPMG and Grant Thornton have been joint auditors of TYV Financial Service for 3 years respectively.
“In view of the well-publicised concerns recently raised with regard to KPMG as well as TYV’s commitment to good governance in respect of auditor independence and auditor tenure, TYV has decided to put its audit out to tender,” it said. “This process is expected to begin in November 2017.”
KPMG is facing legal action from SARS as well as former finance minister Pravin Gordhan, after it retracted its findings and recommendations in its report on the tax collector’s investigation unit.
Parliament’s standing committees on public accounts and finance are set to tackle KPMG soon, they announced on Monday.
KPMG SA’s chief executive, chairperson and five executives have stepped down following a report by KPMG International, which looked into the auditor’s work for the Guptas and SARS.