SOUTH AFRICA · GOVERNANCE
Key Facts
- —The country South Africa is Africa’s most industrialised economy and a member of the G20, the group of 20 large economies, with Africa’s deepest stock market in Johannesburg.
- —What happened South Africa fires auditor Crowe: the Auditor-General, the state body that audits government accounts, dropped its external auditor, Business Day reported on Friday 23 October 2026.
- —Why Crowe’s lead partner Gary Kartsounis was fined R400,000 (about US$24,200) by the audit regulator Irba in March 2026, and Crowe never told the office.
- —The contract Crowe won the work in a 2017 tender, was extended in 2022 and was due to serve until January 2028.
- —The wider row Consultancy PwC found that Kartsounis led Crowe’s R1 billion (about US$60.6 million) valuation of a stake in Lanseria Airport, at the centre of a state pension fund dispute.
- —What it means for you Investors in South African state-linked assets rely on the Auditor-General’s credibility, so how it handles its own auditor is a governance signal.
- —Still open The office is seeking a new external auditor, and Parliament’s oversight committee must approve any appointment.
South Africa fires auditor Crowe: the state Auditor-General dropped its external auditor after Business Day exposed a regulator’s penalty on its lead partner. The newspaper reported the decision on Friday 23 October, ending a contract that was due to run to January 2028.
The Auditor-General is the independent state office that checks how ministries, provinces, cities and state companies spend public money. Its own books are audited by an outside firm, and that firm has now been dropped.
What the Auditor-General Decided
The Auditor-General of South Africa (AGSA), led by Tsakani Maluleke, ended Crowe’s contract over its silence about a sanction on its lead partner. The office told Parliament that Business Day’s July report was the first it heard of the findings, which raised reputational and audit-quality concerns.
AGSA’s audit committee had first asked Crowe to add an extra quality reviewer for the 2025/26 audit file. Crowe received a favourable firm-level quality assessment, but the committee concluded that its concern remained, so South Africa fires auditor Crowe.
The Fine That Started It
Business Day reported on Monday 20 July that the Independent Regulatory Board for Auditors, known as Irba, fined Gary Kartsounis R400,000 (about US$24,200) in March. R200,000 (about US$12,100) of the fine is suspended for three years, and he must complete extra training within 60 days.
Irba found that he did not obtain enough audit evidence on derivative financial assets and options reported as contingent assets. As group engagement partner he also failed to weigh the evidence from component auditors, the firms that audit the group’s subsidiaries.
The Lanseria Valuation Behind the Row
PwC found that Kartsounis also led Crowe’s valuation of a 25% stake in Lanseria Airport, near Johannesburg, held by the empowerment firm Acapulco. The state’s Public Investment Corporation, the pension manager for government workers, had lent Acapulco R333.2 million (about US$20.2 million) in 2013 to buy the stake.
The loan swelled to about R600 million (about US$36.4 million) and Acapulco defaulted. BDO, another audit firm, valued the stake at R238 million (about US$14.4 million), and Crowe was then brought in.
How Crowe’s Valuation Rose
Crowe’s draft valuation in December 2024 was R550 million (about US$33.3 million), and its final figure in January 2025 was R1 billion (about US$60.6 million). Business Day reported that the PIC paid Acapulco R411 million (about US$24.9 million) in October 2025.
A report by PwC, commissioned by the PIC’s chief executive Patrick Dlamini, found double-counting and could not confirm that Kartsounis’s team had valuation experience. The PIC chair David Masondo asked the Special Investigating Unit, a state anti-corruption body, to investigate; Kartsounis did not respond to Business Day.
How Parliament Pressed the Case
On Thursday 30 July AGSA’s deputy, Bongi Ngoma, said the matter was completely unrelated to the AGSA audit process. On Friday 21 August the parliamentary Standing Committee on the Auditor-General, chaired by Wouter Wessels, said a sound opinion still left a reputational risk.
Wessels noted that the Public Audit Act requires the committee to approve the external auditor every year, so it needs alternatives by November. The audit committee’s chair, Grathel Motau, told members that Crowe called its omission an oversight.
What It Means for US Readers
The Auditor-General’s reports shape how foreign lenders and bond investors judge South African ministries, cities and state companies. When South Africa fires auditor Crowe over a disclosure failure, that trust is tested, although extra checks found no misstatement in the 2026 accounts.
The same Lanseria dispute touches the PIC, which the Rio Times has covered in South Africa’s US$200B Pension Fund PIC Names Mohai Board Chair. It also links to earlier losses reported in South Africa’s Isibaya Fund Lost US$1.1 Billion.
What Is Not Known
AGSA has not named the firm that will replace Crowe or said when a new auditor will start. Business Day’s report does not carry any response from Crowe to the dismissal.
Irba’s finding on Kartsounis did not name the company he audited, and the state investigator has not reported on Lanseria. An arbitration process accepted Crowe’s valuation, and Business Day reported that the PIC then paid Acapulco R411 million (about US$24.9 million).
More: South Africa news in English, every day from The Rio Times.
Frequently Asked Questions
Who is South Africa’s Auditor-General?
The Auditor-General is the head of a constitutional state body that audits government departments, provinces, municipalities and state companies. The office is currently led by Tsakani Maluleke.
Why did the Auditor-General fire Crowe?
South Africa fires auditor Crowe because the firm did not tell the office that its lead partner had been fined R400,000 (about US$24,200) by Irba. The office said the silence raised reputational and audit-quality concerns.
Were South Africa’s government accounts wrong?
Parliament’s committee was told that extra checks found no evidence that the statements for the year to 31 March 2026 were misstated. The dispute is about disclosure and trust, not a known error in the figures.
What is the Lanseria valuation dispute?
It concerns a 25% stake in Lanseria Airport, which Crowe valued at R1 billion (about US$60.6 million) in January 2025. A PwC report criticised that valuation, and the PIC pension manager has asked a state investigator to look into it.
What happens next?
After South Africa fires auditor Crowe, AGSA is looking for a new external auditor. Parliament’s oversight committee must approve any choice, and it has said it will not simply rubber-stamp it.
Sources: Business Day, 23 October 2026; Business Day, 20 July 2026; Parliament of South Africa, 21 August 2026; South African Government News Agency, 30 July 2026; Auditor-General of South Africa, 11 September 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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