16 hours ago
Botswana accountancy authority launches probe into PwC following Choppies audit row
The Botswana Accountancy Oversight Authority (BAOA) has launched an independent investigation into PricewaterhouseCoopers (PwC) Botswana's conduct in the 2018 audit of Choppies Enterprises, the JSE-listed supermarket chain - the latest salvo in an ongoing battle.
Image: Reuters
The Botswana Accountancy Oversight Authority (BAOA) has launched an independent investigation into PricewaterhouseCoopers (PwC) Botswana's conduct in the 2018 audit of Choppies Enterprises, the JSE-listed supermarket chain - the latest salvo in an ongoing battle.
The audit delays triggered by PwC's handling of the 2018 financials not only caused Choppies' temporary suspension from both the Botswana Stock Exchange and JSE, but also precipitated a dramatic share price plunge and significant investor losses.
The BAOA holds sweeping regulatory authority with the power to investigate, penalize, impose hefty fines, and even revoke licenses from entities found in breach - making it one of the most formidable oversight bodies in Botswana's corporate governance landscape.
The regulator confirmed it has received a formal complaint from Choppies' legal team and Justice Zein Kebonang, citing two serious allegations of professional misconduct and ethical breaches by PwC and its former lead auditor Rudi Binedell. Central to the complaint is the claim that PwC weaponised confidential internal company data - obtained during its audit engagement - to litigate and defend its own interests in a manner that Choppies' legal representatives argue amounts to abuse of trust and professional overreach.
Choppies said in a statement on Tuesday that in response, BAOA is pursuing a probe to determine whether PwC and Binedell violated their statutory, professional, and ethical obligations. If found culpable, the fallout could lead to penalties that undermine PwC's reputation.
Choppies said, "For Choppies, the investigation is a potential step toward reputational redemption. For PwC, it poses a grave threat to its credibility, market trust, and future in the region."
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
This development comes in the wake of a string of high-profile legal defeats for PwC in its long-running legal battle with Choppies and its CEO, Ramachandran Ottapathu. On April 1, 2025, the Gaborone High Court dismissed PwC's latest suit against Choppies, ruling that it lacked merit and failed to produce evidence of reputational harm. This marked PwC's third consecutive loss in court in a matter closely tied to the controversial audit.
Choppies said, "The dispute has widened dramatically, with Choppies accusing PwC of accessing and using confidential financial information under the guise of an independent audit, and then leveraging that information in subsequent litigation. Choppies' legal team has also challenged the legitimacy of a 2023 High Court ruling by Justice Boipuso Makhwe, arguing that it was tainted by judicial misconduct. They claim the judgment was secretly authored by Makhwe's colleague, Justice Zein Kebonang, who had previously ruled in favour of Choppies in 2021, awarding the retailer over P500 million in damages."
Justice Kebonang has since filed an affidavit accusing PwC of orchestrating a smear campaign, fabricating claims, and manipulating legal proceedings to escape liability. He maintains he had no involvement in drafting the disputed judgment and has demanded that the judiciary investigate the matter further.
Attempts to get comment from PwC by the time of going to print were unsuccessful.
Looking ahead, Ottapathu said, 'Choppies awaits the findings of the BAOA investigation, confident in the integrity of its processes and prior legal victories."
He also said the next step in the lawsuit against PwC would be the commencement of the main trial.
BUSINESS REPORT
Visit:
