Absa cans KPMG as auditor

The auditing firm KPMG says it is disappointed by the decision by Barclays Africa not to re-appoint it as the bank's external auditor. 

Barclays initially said shareholders would consider extending the contract at its annual meeting later this month.

But it has since issued a notice saying the re-appointment won't be considered.

"Subsequent to the release of our Notice of AGM, the ongoing and more recent developments were evaluated by the board, which decided that it is no longer able to support the re-appointment of KPMG Inc," reads a notice to the company's shareholders.

KPMG says it fully accepts the decision but insists it has made various changes at the auditor over the past seven months including changes to "governance, quality, and risk management".

The announcement comes shortly after the auditor-general also ended government's relationship with KPMG. Other clients such as British American Tobacco and Lonmin have kept the company on.

The auditing giant admitted in late 2017 to shortcomings in its work for both the South African Revenue Services (Sars) and Gupta-linked companies.

Subsequent investigations into KPMG's conduct is still underway.

Barclays requires two external auditors and says it will begin a process of finding a second firm to work alongside Ernst & Young.