S. Africa Auditor-General Says KPMG, Nkonki Had Time to Explain

(Bloomberg) -- South African Auditor-General Kimi Makwetu said that KPMG LLP’s local unit and Nkonki Inc. both got “ample time” to explain concerns that were raised by his office before it terminated auditing contracts with the firms.

The Auditor-General announced the decision earlier this month and Nkonki has since applied for voluntary liquidation. KPMG, which has come under fire for work done for the politically connected Gupta family, is introducing a range of reforms in an effort to stem the outflow of business in South Africa.

“Our termination of these contracts was not merely based on media reports on the governance of these firms” Makwetu said in an emailed statement Wednesday.

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