Murky Moyane and KPMG

What was so appealing to South African Revenue Service commissioner Tom Moyane in the KPMG report submitted in January 2016 that he accepted and even agreed with its major findings and recommendations?

What was so condemning in the retraction submitted 18 months later that caused Moyane to invoke the wrath of the government to cancel all current and future contracts with KPMG? It must have been pretty serious and, as the cards now lie, spells the death notice of KPMG SA and could have repercussions on its international practice.

But, does KPMG have an enormous smoking gun in its possession? It submitted the retraction via its lawyers and, it would seem, in the presence of the international boss.

So, why commit this kamikaze act knowing that it will certainly result in self-destruction, even if it is covered by comprehensive insurance? Or, did KPMG have a wrenching confrontation with its conscience, a Damascus moment that compelled it to withdraw a report whose findings appealed to the client and for which KPMG had been paid a fat fee?

It is unusual for businessmen at this level of experience, influence and wealth to act on conscience.

They submit or surrender only to greater wealth and power — and in their own interests.

Roy Cardy

Lonehill