Former KPMG partner found guilty of misconduct on VBS loan admits guilt
A former KPMG partner who resigned in 2018 amid allegations of misconduct involving loans from VBS Mutual Bank has admitted guilt.
The Independent Regulatory Board for Auditors (Irba) found Dumisani Tshuma guilty of misconduct for failing to disclose his interests in VBS.
Tshuma and another partner, Sipho Malaba, faced a disciplinary hearing for their shared role in Betanologix where their wives were directors.
Malaba failed to disclose loans held with VBS, which was placed in curatorship in March and is the subject of a Reserve Bank-instituted forensic investigation.
KPMG employees were required to disclose where they held loans with financial institutions as per company policy.
During the Irba hearing, it was revealed that during 2016 and 2017 VBS was an audit client of KPMG. Malaba was a member of the KPMG VBS audit team and also the engagement partner.
“During March 2016, Tshuma and Malaba, on behalf of Betanologix, applied for and were granted a facility by VBS.
“The facility was not made under normal lending procedures: there were no repayments on the Betanologix facility since the account was opened, the facility increased regularly and resulted in an outstanding amount of R9.6m by February 28 2018 (days before VBS was put in curatorship),” according to the settlement document.
When Tshuma was asked to provide clarity to the firm he denied the existence of such an arrangement with VBS, that Betanologix was his company and that he operated a property business.
He also denied a withdrawal of R200,000 for himself and said it was on his wife’s behalf who did not have her own bank account.
Several transactions were made on the bank account that were on his behalf and that of Malaba.
Tshuma was fined R200,000 by Irba.
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