KPMG Parts Ways With FIFA
June 13, 2016
(WFI) KPMG is out as FIFA’s auditing firm after more than a decade.
FIFA admitted in a statement on Monday that the decision was made by KPMG but added it “welcomes this change”.
The governing body of world football says a new, temporary audit firm will be appointed soon by the FIFA Council. A formal appointment will be made at the next FIFA Congress in May 2017.
KPMG’s departure comes as FIFA remains in the crosshairs of multiple investigations by both Swiss and U.S. authorities. More than 40 former FIFA officials and sports marketing executives have been charged in a wide-ranging corruption investigation.
The awarding of the next two FIFA World Cups to Russia and Qatar is also under investigation amid questions surrounding the bidding process.
Earlier this month, an internal investigation by FIFA revealed that disgraced former president Sepp Blatter and two other high-ranking FIFA officials conspired to “enrich themselves through annual salary increases, World Cup bonuses and other incentives totaling more than $80 million – in just the last five years”.
The election of new president Gianni Infantino and the approval of a reforms package in February is meant to end the corruption within the organization.
In a statement to INSIDER, KPMG Switzerland confirmed its "resignation, with immediate effect" as FIFA's auditor.
"In accordance with Swiss law, by letter dated 9 June 2016, we informed the president of FIFA of our decision to resign and the reasons that led to this decision. In accordance with our professional standards, KPMG AG will work with the successor audit firm, once appointed by FIFA, to facilitate an orderly transition," the statement said.
FIFA’s statement on Monday said a comprehensive audit of the football federation's finance function including its processes and procedures has been initiated.
“In light of the serious allegations involving financial transactions outlined by the Swiss and US authorities, it is essential that the financial function at FIFA be externally reviewed and thoroughly reformed.” the statement said. “The appointment of a new auditor, coupled with the appointments of a new Chief Financial Officer and a new Chief Compliance Officer, are essential steps in this process.
By INSIDER Gerard Farek
Your best source of news about the global football business is World Football INSIDER
Get Free WFI news bulletins Click Here
(Copyright 1992 - , all rights reserved. The information in this report may not be published, excerpted, or otherwise distributed in print or broadcast without the express prior consent of World Football Insider and Around the Rings, Inc.)