Auditing firm Nkonki Inc will be closing down soon.
This comes a week after the Auditor General announced the termination of government auditing contracts with KMPG and Nkonki Inc.
Nkonki has since announced it has taken the “very painful and difficult” decision to undergo voluntary liquidation.
Law firm Nicqui Galaktiou Incorporated, in a statement issued on Monday evening on Nkonki Inc (Sunninghill's) behalf, said the auditing firm had no option but to voluntary wind-up after 25 years in business.
“The 180 employees including the executives, management, divisional heads and the minority shareholder … are victims who had no involvement nor knowledge in the shareholding and loan transactions, the funding thereof nor the due diligence processes that were conducted”.
Auditor General Kimi Makwetu’s decision last week followed the resignation of Nkonki Inc’s CEO Mitesh Patel earlier in April. Patel resigned after investigative journalism centre amaBhungane revealed that his R107m "management buyout" of the auditing firm was funded by Gupta associate Salim Essa through Trillian Capital.
Fin24 published a report by amaBhungane showing the intention was for Patel to hold most of the shares he bought – 65% of Nkonki – as a front for his funders. After the transaction Nkonki Inc was awarded a new deal with state power utility Eskom.
