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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 followsvarious scandals and client losses.
The accounting giant isfighting to restore thereputation of its South African armafter being embroiled in ascandal involving the billionaire Gupta family as well asalleged failings on the audit of collapsed bank VBS.
It unveiled plans for a major shake-up on Mondaythat takesinto account "recent client losses" from the crisis. The restructure will involveoffice closures so thatthe group only operatesout of hubs inJohannesburg, 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 AfricaPresident 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 bossesfrom around the worldto 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 firmdamaged by the scandal surrounding the controversial Gupta family,who are accused of buying influence with South Africas former president Jacob Zuma butdeny 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 includeBarclays Africa,Sasfin and the Auditor-General.
The auditor has been trying to turn around the business eversince it was implicated in theGupta scandal last year,clearing out its formermanagement teamin South Africa last September.
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