Former African Bank exec addresses fallout

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Publish date 18 July 2019
Issue Number 669
Diary Legalbrief Forensic
* Former African Bank executive Gustav Raubenheimer claims Deloitte did not take him seriously when he raised concerns about the bank’s under-provision for bad debt. Raubenheimer said the auditing firm told him speaking out would ruin his relationship with then ...

* Former African Bank executive Gustav Raubenheimer claims Deloitte did not take him seriously when he raised concerns about the bank’s under-provision for bad debt. Raubenheimer said the auditing firm told him speaking out would ruin his relationship with then CEO Leon Kirkinis. Kirkinis was CEO of African Bank in the years leading to 2014 when the bank nearly collapsed under a mountain of unpaid loans, prompting the Reserve Bank to provide a bailout package and place it under curatorship. Testifying at a disciplinary hearing of the Independent Regulatory Board for Auditors yesterday about Deloitte’s conduct leading up to the collapse, Raubenheimer said he was ‘terribly upset’ after the first meeting he held with Deloitte to convey his concerns about the bank’s inadequate provision for bad debt.