KPMG’s Wiseman Nkuhlu blames naivety for collapse of controls at firm

The audit firm has suffered great reputational damage after its links to the Gupta family and recently the VBS Mutual Bank scandal.

FILE: KPMG CEO Nhlamu Dlomu (left) and KPMG chairperson Wiseman Nkuhlu (right) speak at a media briefing on 15 April 2018. Picture: Katleho Sekhotho/EWN.

JOHANNESBURG – KPMG chair Wiseman Nkuhlu has told Eyewitness News that political naivety and poor risk management systems were the primaries of a collapse of controls at the firm.

The audit firm has suffered great reputational damage after its links to the Gupta family and recently the VBS Mutual Bank scandal.

The company has shed about 1,000 workers so far.

Nkuhlu says pressure to produce more revenue influenced the conduct of auditors: “Those we lead should have strengthened their own integrity and quality controls.”

He says with regards to the Guptas, the firm failed to respond timeously to various red flags.

“The wedding issue and landing of a plane at the Waterkloof military base were the red flags that possibly this association people may not be the kind that we want to do business with.”

Nkuhlu says the firm has moved beyond denial of its damaged reputation and is working to change the public’s perception.

(Edited by Zamangwane Shange)

Source: EWN

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