Auditing firm KPMG has blamed the loss of lucrative government contracts for its decision to let go of 400 of its staff as KPMG International ramped up its scrutiny of the local office’s work. KPMG South Africa chief executive Nhlamulo Dlomu said Auditor-General Kimi Makwetu’s decision to sever ties with the controversy-prone firm left some of its regional offices unviable.
“It is important to note that a significant work we did on behalf of the auditor-general was done through our regional offices. The loss of the contract has put the financial viability of these offices at risk, hence the difficult decision we took,” Dlomu said.
Yesterday, KPMG said it would wind down its operations in Bloemfontein, Mbombela, Polokwane and East London. Aeon Investment Management chief investment officer Asief Mohamed said the KPMG International’s intervention would be a costly exercise. He said the staff retrenchments were inevitable following loss of key clients for the firm.