Criminal charges must be laid against KPMG

Staffers can’t escape by resigning, writes Morgan Phaahla from Ekurhuleni.

Awhile ago, the Competition Commission revealed a collusive dealing of major banks in the foreign exchange market. Lately, these banks’ auditor, KPMG, allegedly manipulated audit reports in favour of the Gupta-owned companies to contravene the Auditing Profession Act, in addition to the Companies Act.

I smell a rat. KPMG may have ignored risks of material misstate- ments by intentional omission.

Former US president Grover Cleveland said: “A man is known by the company he keeps, and also by the company from which is kept out.” The former hit the nail on the head.

The question is why KPMG executives were willing enablers of such misrepresentation, knowing that it would hurt the firm’s reputation? Clearly, their ties with the Guptas was a symbiotic relationship for fraudulent purposes, or with intent to defraud. This being alleged, criminal charges must be laid; no escaping resignation would ward off the premeditated wrongdoing.

Thus far, there’s prima facie evidence of corruption that must be referred to the authorities for investigation. It may bring to light other cover ups of illegal activities involving money laundering and tax evasion. These controversial ethical issues seem to be orchestrated in cahoots with other actors central in the shenanigans badly affecting Sars.

The state of affairs warrants for the Independent Regulatory Board of Auditors to take appropriate action against KPMG.