South Africa’s central bank says has not instructed banks on ties with KPMG

South Africa’s central bank said on Friday it has not instructed banks on how to deal with KPMG after the auditing firm was entangled in a scandal involving business friends of President Jacob Zuma.

“The South African Reserve Bank would like to state categorically that it has not instructed banks on what steps they should, or should not take, with regards to their contracts with KPMG,” the bank said in a statement.

Sources told Reuters last week that the central bank had told top lenders they cannot fire KPMG because it might undermine financial stability.

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Credit: CNBC Africa