Ex-KPMG partner slams SARB's 'fatally tainted' VBS report, heads to court
Former partner at KPMG Sipho Malaba is expected to launch a court challenge to have the explosive forensic report into the collapse of VBS Mutual Bank, which implicates him in fraud, set aside.
In a further twist, Malaba is expected to be represented by advocate Dali Mpofu SC, who is also the Economic Freedom Fighters' chairperson.
Malaba left KPMG in March this year after it was discovered he had taken numerous loans from VBS which he had not declared to the global auditing firm.
The report, compiled by advocate Terry Motau and Werksmans Attorneys, was released by the South African Reserve Bank (SARB) on Wednesday. It found that Malaba had committed fraud in signing off on VBS' financial statements and regulatory reports submitted to the SARB, despite having knowledge that the financial statements misstated the bank's position by nearly R700m.
If Malaba and KPMG had blown the whistle, the looting could have been stopped much sooner, Motau found.