The reputation of KPMG – an International Audit firm is hanging in the air after new revelations indicate that it is quickly losing clients across the globe.
KPMG in June announced that it will close its regional offices, with up to 400 people losing their jobs, in South Africa.
Bank of England has launched a probe into whether KPMG continues to be viable amid serious woes in South Africa.
BoE’s Prudential Regulation Authority, which supervises the UK’s financial sector, asked existing KPMG clients whether they were planning to fire the firm.
“The regulator was also keen to understand whether KPMG’s problems in South Africa — where it has haemorrhaged clients and cut hundreds of staff over the past 12 months due to its role in a sprawling government corruption scandal— could jeopardise the rest of its international network,” Financial Times reported.
The auditing firm has been struggling to stay afloat amid an exodus of clients, including Absa, Sasfin and DRDGold.
KPMG also resigned as auditor of the South African Institute of Chartered Accountants, which is currently investigating KPMG.
Over recent months, more details have emerged about KPMG’s association with Gupta companies, and its involvement in a discredited report into a so-called rogue unit at the SA Revenue Service.
KPMG’s head of financial services auditing was also suspended after corruption emerged at VBS, a client of KPMG.