Johannesburg - KPMG suffered its first apparent corporate casualty after financial technology firm Sygnia started preparations to axe the embattled firm as its auditors.

Sygnia founder and chief executive Magda Wierzycka recommended to her board on Thursday that the company should end KPMG's services, following allegations of its involvement in state capture. Wierzycka made the decision after meeting with KPMG on Tuesday and not being satisfied with the action the audit firm is taking.

"Examples need to be made of companies implicated in plunder," Wierzycka told Fin24. "People are motivated by fear and greed. And if the bottom line of a company is affected, they will think twice about their actions."