New broom aims to sweep KPMG SA clean
In less than a month after removing its top management structure, embattled auditing firm KPMG has announced its new leadership team which it hopes will restore public faith in the company.
KPMG SA chief executive officer Nhlamu Dlomu said that she hoped that the new leadership at the firm's South African branch will restore public trust following the revelation that the firm had dealt in a less than transparent and above-board manner in work it did for companies linked to the controversial Gupta family.
Dlomu herself was promoted to CEO on September 15 following her predecessor Trevor Hoole's decision to resign in the wake of the #GuptaLeaks revelations.
The company lost a number of clients, including Foschini, Munich Re of Africa, Sasfin, Sygnia Asset Management, AVI, Hulisani and Telkom who have either decided to terminate relations with the firm or refrain from assigning new work to the firm.
The new leadership team at KPMG South Africa consists of Dlomu as CEO; Gary Pickering who will lead KPMG's audit practice; Sipho Malaba who will continue as lead of the financial services audit unit (KPMG's largest business unit) as well as lead the firm’s strategic projects; Granville Smith who will lead the advisory practice; Joubert Botha who moves from Chief Operating Officer for Tax to interim leader of KPMG's entire tax unit; Modise Maseng who will lead public sector work and Makgotso Letsitsi who will lead KPMG People.
The firm announced the creation of a new position, Head of Risk, designed to to manage client acceptance and retention at the firm. Brian Stephens, a former partner at KPMG USA, will fill this role, while Andrew Cranston has been appointed interim Chief Operating Officer.
"We understand that the immediate road ahead will be challenging," Dlomu said, while reiterating her hope that the new leadership team would be able to restore the firm's credibility with the public.
"This is day one for the new KPMG, a KPMG where public interest will share an equally important role with enhanced governance, quality and ethics," she said.
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