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Metro to terminate KPMG contract

The Municipality will phase out our current contract with KPMG in line with a motion and subsequent resolution of yesterday's full sitting of Council.

It was agreed that the recent ethical scandal surrounding KPMG is ground for concluding the Metro's existing contract with the auditing firm.

KPMG currently manages the Metro's ethics hotline, and our audit and risk plan.

This coalition government wants to ensure that those companies with whom we have existing contracts are beyond reproach.

KPMG currently manages the City's audit plan, and thus will need to hand this over to internal resources within the next 3 months.

Corporate Services, together with the Internal Audit Directorate, in conjuction with KPMG, will draft an exit strategy document with detailed handover processes and time-frames. The Municipal Public Accounts Committee (MPAC) will on its end conduct an oversight function to ensure the exit strategy is developed within the said time-frames so that Internal Audit is properly capacitated. 

The coalition government is serious about rolling out an audit and risk plan that is robust and reliable and that will minimize all fiscal and financial risks that could compromise our cities finances. We are aware that this will require a responsible and comprehensive phasing out of the current contract in order not to compromise our internal risk controls.

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