CAPE TOWN – The Nelson Mandela Bay Municipality says it will be terminating its contract with auditing firm, KPMG, amid the ethics scandal that has dogged the company.
This follows a decision taken by a full sitting of council on Thursday after the Economic Freedom Fighters (EFF) brought a motion for an immediate termination of the contract.
KPMG has been the municipality’s auditors for the last three years.
KPMG currently manages the ethics hotline and the audit and risk plan of the metro.
Chairperson of the municipality’s Public Accounts Committee Lance Grootboom says they want to be sure that the companies it does business with, are beyond reproach.
“Due to the ethical scandal and the public’s perception and confidence in the KPMG brand, we’ve decided to cut ties with KPMG.”
An exit strategy will now be drafted for phasing out the contract.
The municipality says the city’s audit plan will be handed to internal resources within the next three months.