Daily Maverick
Dailymaverick logo

Business Maverick

This article is more than a year old

AGE OF (UN)ACCOUNTABILITY

Confidential out-of-court settlement between VBS and KPMG was R500m: source

Daily Maverick can disclose that the undisclosed controversial out-of-court settlement between auditor KPMG and the liquidator of VBS Bank, Anoosh Rooplal, was R500-million.
Confidential out-of-court settlement between VBS and KPMG was R500m: source VBS Bank. (Photo: Lucas Ledwaba / Mukurukuru) | KPMG. (Photo: Leila Dougan)
Ed Stoddard and Neesa Moodley
By Ed Stoddard and Neesa Moodley
1 Feb 2024
Facebook
24

A source familiar with the matter told Daily Maverick that the sum was R500-million. The money will be paid to the liquidator to distribute among the creditors, who will likely feel short-changed. 

News that a confidential settlement had been reached sparked a public outcry, including from trade union umbrella group Cosatu.

More than R2-billion was stolen from the bank in an elaborate fraud heist, and KPMG was hauled to court by the liquidator on the grounds that it had signed off on the fraud. 

Rooplal had initially claimed damages of R864-million plus interest, but was sworn to secrecy following the out-of-court settlement. 

Such settlements are usually labelled “confidential”, effectively gagging both parties until the matter is signed off with a court order. 

Rooplal said in response, "by virtue of the confidentiality agreement signed with KPMG, we have no comment". KPMG said it would respond later today. DM

Comments

Schalk Burger Feb 1, 2024, 02:23 PM

KPMG staff should be charged for criminal negligence! The money is not what this is about. It is about professionalism of professional people.

Mark Gory Gory Feb 1, 2024, 03:11 PM

Shut them down. Repeatedly found wanting. Jail time

Ndivhuwo R Feb 1, 2024, 04:40 PM

Although of course the report on VBS suggests more than just criminal negligence on the side of the auditors!

Vince.bri Feb 1, 2024, 02:24 PM

And once again the criminals are free to loot again, with only a slap over the wrist for their crimes.... It's a freaking joke that the people that can actually do something about it, do absolutely nothing!!!

Josie Rowe-Setz Feb 1, 2024, 02:28 PM

In 2023, KPMG's global revenue was $36.4 billion, marking an 8% increase from the previous year. Source; statista.

Geoff Coles Feb 1, 2024, 02:42 PM

I think R500 m is pretty good. Remember, the thieves were primarily at VBS and Councilors, mostly ANC

snaid Feb 1, 2024, 03:12 PM

We demand transparency when it concerns government but we accept this clandestine , opaque deals when it is the fraud committed by the private sector. This is a public issue and concerns thousands of the poorest citizen of this country . The agreement should be made public.

Berthold Alheit Feb 1, 2024, 03:15 PM

Fully agree that all guilty parties should be prosecuted.

hillcrestzim Feb 1, 2024, 09:07 PM

A claim against the auditors would be based on professional indemnity claim whose outcome is not always certain and such claims usually take years to settle, so at times this kind of settlement becomes pragmatic. If the Police and Courts do their part, more money could be recovered from those who benefited illegally from the theft.

Albert Smith Feb 2, 2024, 07:37 AM

Why has Deloitte not paid a similarly big fine for signing off on fraud multiples bigger that this at Steinhoff?

Arved von Oettingen Feb 2, 2024, 09:54 AM

"It's not the principle, it's the money!" Why has the money not been recovered from the guilty, (EFF), parties? It should be easier to successfully prosecute these criminals now that KPMG has admitted guilt?

sihlemasoga Feb 2, 2024, 03:51 PM

Indeed covering themselves