Telkom Suspends New Work With KPMG South Africa

13 October 2017

Telecoms

The Foschini Group Ltd. replaced KPMG LLP’s South African unit as its external auditors as the clothing retailer follows other local companies such as Telkom SA SOC Ltd. in reconsidering having work done for them by the accounting firm.

TFG have appointed Deloitte & Touche LLP as its new auditors, the Cape Town-based company said in a statement Monday. The change is effective immediately and was made “following the concerns recently raised regarding KPMG,” TFG said.

KPMG’s South African unit is under investigation by the Independent Regulatory Board for Auditors into work for the politically connected Gupta family. Telkom, South Africa’s largest landline operator, said it won’t award any new business to KPMG pending the outcome of the investigation. The scope and estimated duration of KPMG’s independent inquiry are due to be announced on Thursday, and the findings will be made public. Read the full article on Bloomberg here