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KPMG to cut 400 jobs after South Africa scandals

Big Four auditor KPMG is preparing to cut up to 400 jobs in South Africa in a sweeping overhaul that follows various scandals and client losses. 
The accounting giant is fighting to restore the reputation of its South African arm after being embroiled in a scandal involving the billionaire Gupta family as well as alleged failings on the audit of collapsed bank VBS.  
It unveiled plans for a major shake-up on Monday that takes into account "recent client losses" from the crisis. The restructure will involve office closures so that the group only operates out of hubs in Johannesburg, Cape Town, Durban and Port Elizabeth. 
"It is a matter of great regret that... we will be parting company with loyal colleagues," said chief executive Nhlamulo Dlomu. "We are taking all possible steps to ensure these changes are managed in a caring manner and that everyone is treated with dignity." 
KPMG to cut 400 jobs after South Africa scandals

Former South Africa President Jacob Zuma gestures as he addresses parliament in Cape Town, South Africa 
As well as making hundreds of redundancies the company will bring in a number of senior KPMG bosses from around the world to help with the changes "for an extended period". It is not known if any executives from the UK will be involved. 
KPMG is not the only UK firm damaged by the scandal surrounding the controversial Gupta family, who are accused of buying influence with South Africa’s former president Jacob Zuma but deny any wrongdoing. City PR agency Bell Pottinger collapsed in September as a result of a campaign it ran for a company linked to the family.  
The major clients to have dropped KPMG South Africa in recent months include Barclays Africa, Sasfin and the Auditor-General.
The auditor has been trying to turn around the business ever since it was implicated in the Gupta scandal last year, clearing out its former management team in South Africa last September.  
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