Finmin calls for criminal probe into KPMG

SA law enforcement agencies should investigate KPMG after the global auditor sacked its local leadership over work done for business friends of President Jacob Zuma, Finance Minister Malusi Gigaba has said.

The recent dismissal of its top management in SA followed an internal investigation which found work it did for firms owned by the Gupta family, “fell considerably short” of KPMG’s standards.

KPMG’s already being investigated by the Independent Regula- tory Board of Auditors for its work for the Gupta firms and several SA companies are reconsidering their use of the firm.

Gigaba called on companies and other stakeholders to join hands and “(root) out bad elements” that undermine the SA economy.

“It is therefore, warranted and critical that the relevant law enforcements and bodies such as the Independent Regulatory Board for Auditors look into this matter to identify and sanction those re- sponsible for any wrong-doing.”

He also called on all government departments to consider reviewing their work with KPMG to ensure “their audit processes have not been compromised.”

The Democratic Alliance said it will review KPMG’s contracts in the more than 30 municipalities it runs, while Business Leadership South Africa (BLSA) suspended KPMG’s membership, citing the “gravity” of its conduct over the auditor’s work for Gupta firms.

“BLSA recognises the considerable steps announced by KPMG to change its leadership and commence a process of cultural change,” it stated. “It cannot, however, look past the gravity of their conduct which is completely inconsistent with the values of BLSA.”

KPMG International said it would approach a senior legal figure to conduct an independent investigation into the work its SA firm did for the Guptas.

“The investigation will determine if there is any evidence to suggest KPMG South Africa partners or staff were complicit in illegal activities by the Gupta family and their businesses,” KPMG International chair John Veihmeyer stated.

The document, alleging the creation of an illegal “rogue unit” at Sars, has been used as ammunition to dismiss or discredit senior employees at the tax service.

Meanwhile Gold Fields said KPMG would for now continue to serve as its external auditor. – Reuters