Report have revealed that KPMG’s lead auditor in the R1.8 billion scam at VBS Mutual Bank, Sipho Malaba, played an active role in covering up the fraud and was rewarded with a handsome R34 million.

Malaba’s conduct has put embattled KPMG into further peril. He tried to conceal the undue money he received from VBS as loans but the forensic investigator rubbished his explanation.

“Malaba had obtained very substantial facilities from VBS which cannot be regarded as arm’s length borrowings and were not declared to KPMG. He gave an unqualified audit opinion in circumstances where he knew the financial statements were misstated. He also gave a regulatory audit opinion which he knew to be false,” the forensic report reads.

He qualified as a chartered accountant some eighteen years ago. He did his articles at KPMG.
He became the engagement partner for the VBS audit about five or six years ago.
He testified that his ordinary salary after tax was between R120 000 and R130 000 per month
His residential home in Fourways is the one purchased by way of the mortgage bond held with VBS.
He purchased Range Rover Evoque using VBS money. The debit orders for payments to this account were almost invariably reversed and VBS never took any collection steps on the accounts apart.
A Discovery 3.0 TSD and a Mercedes Benz were also purchased through VBS’ closed motor vehicle finance scheme, which provided special terms only available to employees, directors and shareholders of VBS.