KPMG has picked an insider to take over as CEO of the SA division, betting on institutional memory for the firm that faced an existential reckoning after being engulfed in the state capture scandal.
Joelene Pierce’s appointment follows the planned retirement of Ignatius Sehoole, who led the firm through a reputation overhaul after its involvement with the Gupta family and the discredited SA Revenue Service rogue unit report forced major clients such as Absa and Sasol to cut ties with the company.
“I am extremely grateful and honoured to take on this new role and build on the strong foundations created during Ignatius’ tenure. I am committed to remaining focused on transformation and ethical practice, as well as embedding critical thinking into the business,” said Pierce.
“This will ensure that, in addition to continuing the strong focus on instilling trust in the brand, we continue to expand the firm’s role in social and economic development. With a strong client base across different sectors, building on this will be a priority, along with continued development for our people and culture.”
KPMG’s deepest crisis stemmed from the state capture investigations in 2017 and 2018, which exposed ethical lapses and governance failures. As confidence collapsed, the firm lost hundreds of staff and suffered revenue losses when blue-chip clients turned their back on it.
When Sehoole assumed the reins in 2019, he inherited an organisation in free fall, compounded by its involvement in the collapse of VBS Mutual Bank, which was then the latest to rock the industry after rivals Deloitte and PwC were forced to put out fires related to dodgy bookkeeping practices with the state, Steinhoff and Tongaat.
“It is an honour to hand over to not only a highly skilled, responsible leader, but one whose career has been underpinned by driving the core principles which we, as a business, are passionate about and actively drive within the sector,” Sehoole said.
Pierce, who starts next March, leads the KPMG financial services division and sits on the firm’s policy board, capping a 26-year tenure with the company — 19 of those years as a partner. Along the way, she has advised most of KMPG’s top 10 clients in the region, earning a level of institutional insight that spans audit, tax and advisory practices.
She inherits an industry contending with several pressing issues, from heightened regulatory scrutiny and skills shortage to rapid digital disruptions and evolving audit mandates. For instance, industry regulator IRBA (Independent Regularity Board for Auditors now wields expanding enforcement powers, imposing fines of up to R5m-R10m per charge and demanding more rigorous reporting disclosure.
The industry has been grappling with a talent gap as emigration and risk-averse perception of the industry shrink the pool, while AI and other real-time analytics are slowly transforming audit services, requiring investments in new tools and upskilling.
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