Pravin threatens to sue audit firm and wants apology over ‘rogue unit’
PRAVIN Gordhan threatened to sue audit firm KPMG and demanded an apology over the damage the company had caused with the controversial South African Revenue Service “rogue unit” report. Eight senior executives were forced out in a major shake-up yesterday.
The firm also announced it had withdrawn the Sars rogue unit report for falling short of the standard of work the company expected.
Former finance minister Gordhan has been under investigation by the current leadership of Sars and the Hawks over the “rogue unit.”
KPMG said “the evidence in the documentation provided to KPMG South Africa does not support the interpretation that Mr Gordhan knew, or ought to have known, of the ‘rogue’ nature of this unit.
“We recognise and regret the impact this has had.”
The firm had offered to repay Sars the R23 million fee received for the extensive work performed, or to make a donation for the same amount to charity.
Demanding an apology, Gordhan said the collabora- tion of KPMG executives with “nefarious characters” in Sars had led to “state capture” of the institution.
Yesterday, the fir m announced the resignations of chief executive Trevor Hoole, chief operating officer Steven Louw, chairperson Ahmed Jaffer and five senior partners.
KPMG has been embroiled in controversy in the past few weeks over the work it did for the Guptas, including the siphoning of R30 million from the dairy farm in Vrede, Free State, to pay for a lavish wedding in Sun City in 2013.
Nhlamu Dlomo was yesterday appointed to replace Hoole.
The Guptas have been under fire in recent months with mounting calls for President Jacob Zuma to set up a commission of inquiry into state capture.
The North Gauteng High Court heard an application by the official opposition in Parliament for the establishment of the commission of inquiry.
This week, the Supreme Court of Appeal also heard another application by Zuma to drop corruption charges against him.
But in a dramatic twist, Zuma’s lawyer Kemp J Kemp admitted the decision by for- mer acting National Prosecuting Authority head Mokotedi Mpshe to drop the charges against Zuma in 2009 was “irrational”.
This has led to opposition parties in Parliament calling for the NPA to reinstate the charges against Zuma, who said he would make fresh representation on why the charges must not be reinstated.