KPMG South Africa announced this month that it is closing regional offices and cutting up to 400 staff as the scandal-hit firm aims to reshape its business after losing numerous clients this year.
The firm is closing offices in Mbombela, Polokwane, East London and Bloemfontein, and focusing on its operations in Johannesburg, Cape Town, Durban and Port Elizabeth. Newly appointed Chief Executive Officer of the South African firm, Nhlamulo Dlomu, said she regretted the decisions made, but deemed them necessary. “We are taking all possible steps to ensure these changes are managed in a caring manner and that everyone is treated with dignity,” she said.
KPMG’s South African branch has faced criticism since August 2017 over work done for a company owned by the politically influential Gupta family and its auditing of VBS Mutual Bank, which collapsed in March, leading KPMG to audit its own staff. Barclays Africa Group also cut ties with the firm amid the controversy. KPMG has appointed nine new executives in 2017 in a bid to restore trust in the firm.
