By Modupe Gbadeyanka
It is more trouble for renowned global auditing firm, KPMG, over its involvement in the Gupta mess in South Africa.
Since its involvement in the scandal, the company has been under fire with some firms dropping KPMG as their auditors.
The latest to have towed this line is South African miner, African Rainbow Minerals (ARM), which has fired the auditing firm as its auditor on Monday.
ARM is a South African diversified mining and minerals company that mines and beneficiates iron ore, manganese ore, chrome ore, platinum group metals (PGMs), copper, nickel and coal.
The firm, owned by South African billionaire, Patrice Motsepe, also produces manganese and chrome alloys, and has an investment in gold through its shareholding in Harmony.
A statement released by the South African miner explained that after a careful consideration, it had to end its ties with KPMG based on governance and ethics compliance.
Specifically, the mining firm said it “noted with concern the questions raised about KPMG’s governance and ethics compliance as well as allegations regarding the lawfulness of KPMG’s conduct.”
It stressed that, “The ethics, governance and quality of the South African auditing firms have been globally respected for many years.
“It is extremely important that the behaviour and conduct of our auditing firms continues to justify the respect, trust and confidence that they have earned.”
Few weeks ago, KPMG fired its South African team over the Gupta family issue. The auditing company was accused of covering money laundering in Gupta-owned businesses.
