Tag: corporate failure

Collaboration between government and business is vital to realising economic growth. Government should set up a conducive environment for businesses to operate while businesses ensure that they help grow the economy and employ citizens. This partnership must ensure that socio-economic goals are also met for the benefit of citizens.

Rolling blackouts and the recently imposed 18.65% Eskom tariff hikes from April next month are likely to place additional stress on the South African consumer and businesses to the extent that further bankruptcies are inevitable. With the prospect of higher interest rates, low growth and still high inflation, many companies could face corporate failures particularly in the early part of 2023.

The South African and other global economies have fallen victim to corporate failures that resulted in devastating effects on investors and the public. When such corporate failures do occur, the role of the auditor is often brought under scrutiny; particularly as it relates to the role of the auditor in detecting fraud, resulting in an increased focus on the audit expectation gap.

Originally, the Venda Building Society, VBS Mutual Bank was a small, little-known lender in Limpopo before it rocketed from obscurity in 2016 by giving President Jacob Zuma a controversial home loan to repay the state for improvements to his Nkandla homestead.