Axing bosses not enough, KPMG
When South African history about the current era is penned, it is quite possible that the role played by the private sector in looting of state coffers will only be a footnote. Unlike politicians, business leaders do most of their work out of the public eye.
And it’s that unfortunate protection that has allowed world-renowned and respected auditing giant KPMG to play a significant role in shaping the political events that have enabled the capture of state institutions like the South African Revenue Service (Sars).
The likes of KPMG can simply announce an overhaul of their entire leadership structure and act like they are taking responsibility for the unethical actions of those involved in drafting the report that put paid to the careers of the likes of former finance minister Pravin Gordhan – but that will not undo the untold damage they have done to public institutions by backing what was essentially the capturing of Treasury.
Retracting to a report that said Gordhan was responsible for a non-existent rogue unit is clearly criminal.
The fervour with which we require the law to take its course when politicians are caught with their hands in the cookie jar must be there when companies are caught out too.
And calling it “collusion” instead of calling it out for what it is, is part of the problem. That allows the likes of KPMG International to think that replacing their leadership structure is enough. No, it cannot be enough.
Just like dirty politicians those business- people who took the decisions to side with state capture must be held responsible legally.
The cop-out by most of these auditing firms when they are caught is always to cut ties with their problematic clients, like KPMG did back in 2015, cutting ties with Gupta-owned companies. But they had already played a role in ensuring that R30 million of public funds that was meant to go to a Free State dairy project ended up funding a lavish Gupta wedding at Sun City.
Can it be enough to simply remove the people responsible for the money laundering? No. There must be consequences beyond the loss of a job. The company must own up to being in the same group as dirty politicians.
Public consulting firm McKinsey must also be made to own up to the damage they have caused to South Africa as a whole. It is very heartening to hear that authorities in the United States are looking to use their regulations to bring McKinsey to account for their acts of “international corruption”.
We must not demand any less of companies that use their historical reputations and size to do exactly what we frown upon when done by our politicians.
In most cases of corruption in state-owned institutions it is easy to finger the executive around whom everything is centred, the one who signs off documents and ensures that public funds are diverted into private hands. We always forget there is always an enabler, usually a reputable private sector company such as KPMG or McKinsey.
They are just as responsible for the corruption and must be made to pay heavily to discourage others from going the same route.
The fervour with which we require the law to take its course when politicians are caught with their hands in the cookie jar must be there when companies are caught out too.