KPMG woes deepen on VBS scandal

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Information relating to VBS would be considered within the next month at the next audit committee meeting, he said.

Two partners resigned after facing disciplinary charges over failure to disclose financial interests in connection with VBS Bank, which was placed under curatorship.

The auditing firm said that the resignations of Sipho Malaba and Dumi Tshuma has been accepted.

On Friday‚ the South African Reserve Bank announced it had commissioned a forensic probe into VBS‚ after placing the bank under curatorship in March when it emerged the bank was facing a severe liquidity crisis and could not repay deposits.

On Friday, two of the company's executives resigned. She added that the firm would not hesitate to inform law enforcement authorities should the need arise during the course of the investigation. Malaba was the head of the group's financial services auditing unit and responsible for signing off on VBS's financial statements. "We say for 60 days‚ every one - partner or associate director of KPMG - must see that there is a secure line that they can report those things‚" Nkuhlu said.

Although not flagged by KPMG during its audit, VBS's curator, SizweNtsalubaGobodo's Anoosh Rooplal, has uncovered a number of related-party transactions between VBS, related companies and staff.

Dlomu admitted KPMG had lost clients amounting to "less than 10%" of its client book as well as losing a number of partners that resigned to move on to other firms in the wake of the revelations that came to light in September a year ago.

I have already communicated a request to the Independent Regulatory Board for Auditors (IRBA), requesting that they extend their ongoing investigation into KPMG to include the role they played at VBS.

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