EL KPMG branch to be shut down

KPM East London branch is expected to close its doors and about 400 will be left jobless
KPM East London branch is expected to close its doors and about 400 will be left jobless
Image: File

Days are on countdown for staff at the KPMG offices in East London.

The branch was identified as among the four to be closed countrywide after a recent announcement by the auditing firm’s CEO, Nhlamulo Dlomu.

Dlomu attributed the closure to lack of business and said close to 400 employees would lose their jobs.

According to KPMG communications manager Nqubeko Sibiya, there are 29 employees at the East London branch, 12 of whom are trainees.

At this stage it is unclear how many will be relocated to fill vacancies elsewhere in the country.

The national auditing firm lost its credibility and several big contracts when it was named among companies that carried out work for Gupta firms linked to the state capture saga, including its contract to provide services to the Auditor-General.

After the announcement of closure of four regional offices – in Bloemfontein, East London, Mbombela and Polokwane – the Daily Dispatch inquired at the local East London office in Berea for comment.

However, a note on the door at the entrance of what appeared to be a deserted office read: “Office has been closed due to a staff meeting, for any queries please call Loretta.”

The sign was up throughout most of the day on Tuesday.

When the Daily Dispatch called the number provided, we were directed to Sibiya.

Sibiya told the Daily Dispatch that while many employees would be displaced, some could be sourced for understaffed branches.

“Regrettably, the commercial realities are that we do not have enough work for our current staff complement in our regional offices – which was also impacted by the Auditor-General’s decision. Therefore, we will be concentrating our work in our four hubs in Johannesburg, Durban, Port Elizabeth and Cape Town.

 “We are doing everything we can to help everyone affected to find a new job as fast as possible,” he said.

Sibiya could not confirm what would happen to the students doing their articles with the firm, nor could he say exactly when the branch would officially close.

“The proposed closing dates are either the end of August or the end of September, depending on the office,” he said.

When the Daily Dispatch visited the branch again yesterday, the sign on the door had been removed, but the two employees on the premises declined to comment to the Dispatch and referred questions to Sibiya. — mbalit@dispatch.co.za

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