Telkom has confirmed that it will not grant KPMG any new contracts until an investigation by the Independent Regulatory Board for Auditors into the auditing firm has been concluded.
This after Business Report revealed today that Telkom was looking to cut ties with the embattled auditing firm. KPMG's South African arm has been embroiled in a country-wide scandal regarding its business practices, which has resulted in some companies dropping the firm's business.
Citing an email sent by an internal source, the newspaper reported that the JSE-listed company was concerned about the "media reports surrounding KPMG SA and allegations around the conduct of some of its employees".
According to Business Report, the email distributed to Telkom employees reads: "We have engaged with our Telkom Group Board Audit Committee on this matter and the audit committee has decided that the Telkom Group will not award any new business to KPMG SA until the investigation by the Independent Regulatory Board for Auditors (Irba) has been concluded."
"We emphasise that the decision to withhold any further awarding of business to KPMG SA is subject to the outcome of the final investigation report by the Irba."
Telkom says it will determine a way forward in relation to its business with KPMG once the investigation has been completed, according to Gugulethu Maqetuka, executive for group communications at Telkom.
Maqetuka pointed out that the mobile operator has not terminated relations with KPMG. "All existing contracts and work currently being undertaken will continue until their expiry date."
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