Jamie Gray

Jamie Gray is a business reporter for the New Zealand Herald and NZME. news service.

KPMG resigns as PGC auditor - cites 'unresolved differences'

PGC major shareholder and managing director George Kerr. Photo / supplied
PGC major shareholder and managing director George Kerr. Photo / supplied

Multi-national accounting firm KPMG has resigned as PGC Group's auditors over "unresolved differences" concerning certain transactions, PGC said today.

KPMG said it had resigned over "unresolved differences as to whether certain transactions should be disclosed as related party transactions, and concerns over the adequacy of governance and management of financial reporting."

PGC, a financial services group, said it strongly rejected the claims.

The NZX-listed company said it had made KMPG an offer to resolve what it said was a "technical impasse".

The offer was that if KMPG still had unresolved differences with PGC by the time the June 2012 financial year audit was completed, it would publish whatever KPMG thought was appropriate within the 2012 annual report, or earlier if required.

"PGC also notes that, in order to ensure a very high standard of internal accounting controls and activities, on April 2 the PGC board shifted PGC's central accounting functions to Deloitte," the company said.

"PGC takes the untimely resignation of KPMG very seriously, and has reserved its rights accordingly," the statement, signed chairman Bryan Mogridge, said.

On April 26, managing director John Duncan resigned from the company.

He was replaced by George Kerr, who is a major shareholder in PGC.

- APNZ

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