Stop bidding for state work, Scopa tells KPMG
THE standing committee on public accounts (Scopa) has put pressure on KPMG to stop bidding for government contracts until all investigations into it has been completed.
This could cost the firm hundreds of millions of rand a year. Scopa said it would create problems for KPMG to bid for state work with a cloud hanging over its head.
KPMG has received hundreds of millions from state contracts the past three years.
This year KPMG received R577 million, last year government departments and entities paid it R485m and the year before the state paid it R456m.
KPMG came under fire in Parliament yesterday when it was questioned on failing to pick up red flags on its work for the Guptas for 14 years.
KPMG audited 35 companies belonging to the Guptas.
The auditing firm was also roasted for creating a crisis in the country with its Sars rogue unit report, which had implicated axed finance minister Pravin Gordhan.
KPMG has promised to come clean on all it has done and believes various investigations including an independent inquiry would shed light on what happened.
KPMG acting chairperson Gary Pickering and the firm’s chief executive, Nhlamu Dlomu, tried to defend some of its decisions. Asked by DA MP David Maynier if it would consider stopping bidding for government contracts until all investigations had been completed, Dlomu said: “We are open to consider your suggestion. We’ll reflect on it.”
Parliament has cut ties with KPMG to do work for its medical aid scheme.
Finance Minister Malusi Gigaba has also asked the government to review the work done by KPMG over the past few years.
Scopa chairperson Themba Godi asked KPMG to co-operate with the Independent Regulatory Board for Auditors (IRBA) on its investigation.
“It is important for the public to know your time frames and not to tender for public work until you have cleaned yourselves. Once you have this thing hanging it creates problems,” said Godi.
Pickering and Dlomu also denied they have not been co-operating with IRBA.
Pickering said they had issues with IRBA over its jurisdictions to hand over some documents. “There was a discussion around jurisdiction and documents have now been sent to IRBA,” said Pickering.
Dlomu said they met IRBA chief executive Bernard Agulhas a week go to clarify the matter and they have now sent documents.
Pickering also told Scopa that they had paid severance packages to the nine executives who were fired after the scandal broke. He would not disclose the amounts paid out.
EFF MP Ntombovuyo Mente asked why KPMG had not reported to the police irregularities in the transactions of Gupta companies. Pickering said they had now complied with their reporting obligations.