KPMG backlash sees auditing firm lose business
MORE companies are jumping ship and leaving KPMG in haste after the fallout over its withdrawn Sars rogue unit report and its links to the Guptas.
Yesterday Sasfin joined energy investment firm Hulisani in dropping KPMG after the scandals rocked the auditing firm.
This comes as the standing committee on finance was preparing to receive a report from the Independent Regulatory Board for Auditors (IRBA) on its investigation into KPMG.
The committee will get the report from IRBA on October 3, and David Maynier of the DA said this is what they have been calling for.
He said IRBA has been conducting various audits and this includes the Linkway Trading matter involving KPMG and the Guptas.
The SACP also entered the fray yesterday and accused Sars commissioner Tom Moyane of launching an opportunistic attack on KPMG.
SACP spokesperson Alex Mashilo said Moyane used the same rogue unit report to fire people at Sars.
“What must happen to the Guptas in connection with their widespread, reported involvement in state capture must apply to KPMG with equal force,” said Mashilo.
“The money and assets that were acquired from such activities must be seized and restored to public revenue and the law must take its full course,” he said.
He said the state’s reliance on private companies to do work for it was the cause of tender corruption and state capture. He said KPMG must be held accountable for this.
The dropping of KPMG by Sasfin and Hulisani comes after other companies warned the auditing firm they will cut ties with it.
Last week Barclays, Investec and Standard Bank said they would review their relationship with the auditing firm. KPMG has taken blows after the Gupta scandal broke and KPMG International axed seven executives and withdrew the Sars rogue unit report.
But Moyane has taken a tough stance that the report stands. Mashilo said Moyane’s stance on the report did not make sense.
He said it was clear the report was used to pursue former finance minister Pravin Gordhan by the Hawks.
Gordhan has also said he will consider suing KPMG after the scandal broke.
KPMG has said it would refund Sars the R23 million it paid for the work but Moyane said they will sue the firm for backtracking on the report and causing reputational damage to the tax agency.
The auditing firm also said it would also consider channelling the R23m to charity.
It said it would donate the R40m it received from the Guptas to fighting corruption.