Barclays Bank of Kenya #ticker:BBK has defended the choice of
KPMG Kenya as its external auditor weeks after its mother company
Barclays Africa Group Ltd (BAGL) ceased to engage KPMG South Africa over
integrity concerns.
Friday, Barclays Bank of Kenya (BBK) shareholders approved KPMG Kenya as the lender’s external auditor for the second year.
The
shareholders of the Nairobi Securities Exchange (NSE) listed tier-one
bank voted in support of the proposed auditors during the bank’s 50th
annual general meeting held in Nairobi.
Barclays
management said there was no contradiction since the partnership in
Kenya is a separate entity - “completely separate legal entity” -from
the partnership in South Africa.
“The issues pertaining
one entity, which is South African entity cannot be attributed to
another entity. For that reason, we know, we as a Kenyan company are
comfortable with the practice and partnership that exist here locally
and that’s why we have proceeded with approving them as our auditors,”
said BBK marketing and corporate relations director Caroline Ndung’u.
BBK’s
parent company BAGL a few weeks ago said that it had dropped KPMG South
Africa as its auditors following a controversy over its work for the
infamous Gupta family, which has faced a barrage of allegations linked
to state graft.
BAGL is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services group.
Change of name
Barclays Kenya management said it was able to separate the two companies and there is no overlap in how they do business.
The shareholders also approved the bank’s planned change of name to Absa over the next two years.
“The
approval by our shareholders marks a key milestone in our separation
from Barclays PLC and our transition into an independent African bank
with a global reach.
At Barclays Kenya, it is an
exciting opportunity for us to build on our legacy and create a truly
Kenyan business with renewed commitment to bring possibilities to life,”
said BBK chairman Charles Muchene.
The approval by
BBK’s shareholders came just a week after shareholders of the parent
company – BAGL gave the go-ahead for the group to change its name from
Barclays Africa to Absa Group in July.
Following this
approval, Barclays Kenya has until June 2020 to unveil its new brand in
the market, subject to regulatory approval.
This is in
line with separation agreement between Barclays PLC and BAGL, which
allows the use of Barclays brand in the market until 2020.
But
even before the 2020 deadline reaches the Kenyan lender is already
facing legal hurdles in its bid to adopt the name of its South African
parent company.
Last month a petitioner rushed to court
to block Barclays Kenya from using the name, saying it had already
registered a company as Absa Group.
As of June 2017, Barclays PLC was a minority shareholder in BAGL.
“This
process will be managed and will align with all shareholder and
regulatory requirements to ensure it is a seamless transition for all
our stakeholders.
‘‘Our new identity will bring with
it a heightened level of customer –obsession, a determination to be more
digitally-led and take advantage of the opportunities that this market
present,” said BBK managing director Jeremy Awori.
The
tier-one lender, will also be putting in place virtue banking, expanding
its agency, Internet and mobile banking as well as open new branches to
serve new customers as and when is appropriate.
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