Pretoria: The Auditor-General of South Africa (AGSA) is investigating a senior partner at audit firm Crowe, following the disclosure that a partner conducted a contentious valuation related to the acquisition of a stake in Lanseria Holdings.

According to South African Government News Agency, Auditor Gary Kartsounis provided financial valuation services in a transaction between the Public Investment Corporation (PIC) and Acapulco concerning the acquisition of a stake in Lanseria Holdings. These valuations are currently under scrutiny. The issue also involves the Independent Regulatory Board for Auditors (IRBA), which has made adverse findings and imposed sanctions against Kartsounis, based on audit files unrelated to AGSA that did not meet IRBA's quality standards.

In response to the allegations surrounding their external auditors, AGSA's audit committee organized a special session to assess the situation and seek clarification from Crowe's management. Although the matter is unrelated to the AGSA audit process, the audit committee decided to proactively request the firm to provide additional assurance on the AGSA audit process, as stated by Deputy Auditor General Bongi Ngoma.

Ngoma emphasized that AGSA is committed to maintaining strict oversight measures. She highlighted the institution's constitutional mandate to ensure good governance and reiterated the importance of leading by example to maintain unquestionable governance systems and reputation. She assured that once all assurance and risk assessment processes are finalized, the National Audit Office will announce the outcomes and the subsequent course of action.

AGSA has reassured the public and stakeholders that the issue is being addressed diligently by its audit committee and management to ensure the AGSA audit remains uncompromised and proper safeguards are in place.