KPMG South Africa Seeks CEO From Outside Firm to Rebuild Trust
(Bloomberg) -- KPMG South Africa is seeking a chief executive officer from outside the auditing firm to rebuild trust after becoming embroiled in a series of scandals that cost the organization a number of high-profile clients.
Current CEO Nhlamulo Dlomu will be taking up a new global role focusing on organizational culture change and ethical leadership, where she will be working with KPMG’s Global Chairman Bill Thomas, the Johannesburg-based company said in an emailed statement. In the interim, Wiseman Nkuhlu will serve as executive chairman.
“Given the scale of the reputational challenges facing both KPMG and the industry, the board has decided that a new chief executive from outside the firm, with strong industry experience, will optimize prospects of rebuilding trust,” KPMG South Africa said. “A search to identify a successor is well advanced.”
The company is being investigated by two auditing bodies in the country over work for entities linked to the Gupta family, who have been accused of using their friendship with former President Jacob Zuma to siphon off state funds. The company was also forced to withdraw the findings of a report it compiled for South Africa’s tax agency that was used as evidence in a police probe against former Finance Minister Pravin Gordhan.
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