DA believes document key in Guptas’ probe
THE Democratic Alliance has handed a copy of KPMG International’s statement on its probe into work performed on behalf of the Gupta family to the Hawks.
DA spokesman on finance David Maynier said the statement may assist the Hawks in its investigation into the Guptas.
He said the DA welcomed KPMG’s purge of seven senior executives from KPMG South Africa.
The investigation into the audits of Gupta entities – including Linkway Trading (Pty) Ltd‚ a South African company controlled by the Guptas which was allegedly involved in tax evasion – established that:
● Management of many Gupta entities responded misleadingly and inadequately to audit teams enquires about the nature of related party relationships and the commercial substance of significant unusual transactions; and
● A series of misrepresentations from the client over the period that KPMG South Africa provided tax advice.
Maynier added, saying this meant that KPMG International‚ as well as KPMG SA might have information that was vital to the investigation being conducted by the Hawks into Minerals Resources Minister Mosebenzi Zwane‚ Atul Gupta‚ Ajay Gupta‚ Rajesh Gupta‚ Ronica Ragavan and Kamal Vasram for alleged racketeering‚ money laundering‚ assisting another to benefit from the proceeds of unlawful activities‚ and acquiring‚ possessing or using the proceeds of unlawful activities in terms of the Prevention of Organised Crime Act (No 121 of 1998) as well as submitting untrue tax returns in terms of the Tax Administration Act (No 28 of 2011).
“The investigation follows criminal charges laid by myself on 03 July 2017 after revelations that public funds‚ meant to assist the poor‚ were allegedly washed through a complex web of front companies and used to pay for Vega Gupta and Aakash Jahajgarhia’s wedding at Sun City in 2013.
“I have‚ therefore‚ furnished Major-General Zinhle Mnonopi with a copy of KPMG International’s press statement‚ which may assist in the investigation being conducted by the Hawks‚” Maynier said.
● A coalition of civil society organisations, Future SA, has called on the government and parliament to investigate all allegations of state capture “urgently and credibly”.
It said on Saturday efforts should now be directed to ensure that all relevant evidence is secured‚ all assets are preserved and the implicated persons be called upon to answer the allegations against them.
Future SA was responding to KPMG’s withdrawal of its SARS report and its review of the company’s work for the Gupta family.
“KPMG must realise the extent of the damage that their work caused South Africa‚” it stated.
KPMG’s report had manifested itself in a tarnished reputation for the institution‚ questionable independence and lower levels of compliance with tax and customs law‚ Future SA charged. The body further called on KPMG to: ● Report all instances of money laundering‚ tax evasion‚ infringements of South African law and regulations they had discovered in their review to law enforcement authorities and regulatory bodies; ● Make the reports of their review public; ● Apologise directly to all those whose rights and interests were injured by their “SARS report”; and
● Repay all the related fees back to respective institutions. — DDC the