ABN - KPMG is set to cut hundreds of local jobs in order to rescue its South African business following a series of allegations relating to the firm’s links to the Gupta business family.
The big four global auditor said that up to 400 people will leave KMPG South Africa and some offices in the country would be closed to account for recent client losses and current levels of demand for certain services.
KPMG will also parachute in a number of senior executives from across its international network as part of the rescue effort.
The company has endured a major client exodus since it was implicated in reports of corruption through its links to the Gupta empire. Client losses during recent months include Barclays Africa and several government institutions.
The Gupta’s have been accused of controlling government business through a friendship with former South African president Jacob Zuma, and regulators are investigating KPMG over audit work relating to the Gupta’s.
KPMG South Africa will retain 130 partners and over 2,000 employees across four major offices in Johannesburg, Cape Town, Durban and Port Elizabeth, the firm said.
“These hard decisions were necessary to put the firm on a more sustainable footing, while ensuring we continue to offer our clients the best service and support,” said Nhlamu Dhlomu, KPMG South Africa’s chief executive.