South Africa: KPMG to layoff 400 employees after graft scandal

Jun 04, 2018

Global auditor KPMG said on Monday it will layoff up to 400 people as it closes offices in South Africa following a corruption scandal that resulted in the firm losing several major clients.

“These hard decisions were necessary to put the firm on a more sustainable footing, while ensuring we continue to offer our clients the best service and support,” Nhlamulo Dlomu, chief executive of KPMG South Africa, said in a statement.

KPMG has been under scrutiny since 2017 when its inquiry found flaws in work it did for the national tax agency. The auditor has said it is cooperating with authorities and addressing its shortcomings. 

The firm’s troubles began over work it did for a company owned by the Gupta family, who are alleged to have used their links to former president Jacob Zuma to influence government decisions. KPMG plans to only operate in four hubs in Johannesburg, Cape Town, Durban and Port Elizabeth.

As part of plans to refocus the business, KPMG will appoint a number of senior KPMG partners from across the international network into board and executive positions as well as senior client service roles, it said.

 

(Reuters)

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