African Rainbow Minerals, founded by South African business tycoon, Patrice Motsepe, has terminated the working relationship with auditing firm KPMG.
In a statement, the company’s reveals: “ARM has noted with concern the questions raised about KPMG’s governance and ethics compliance as well as allegations regarding the lawfulness of KPMG’s conduct. 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. After careful consideration, ARM has decided to terminate its relationship with KPMG”.
Amongst companies that have terminated contracts with the scandal-ridden auditing firm, KPMG, in recent weeks include: The Foschini Group, consumer goods distributor AVI, Munich Re of Africa and Sasfin. Other organisations have said they are reviewing their respective contracts with the auditing firm.