Auditors board to appear before MPs
Investigation into Gupta links in KPMG makes progress
THE MEETING of the standing committee on finance with the Independent Regulatory Board for Auditors (IRBA) will shed light on progress made in its investigation into KPMG. The investigation was launched in June after it emerged that KPMG had converted the Guptas wedding into a business expense. The IRBA is set to appear before MPs on October 3 to give progress report into the investigation. KPMG has come under fire in recent days after it withdrew its Sars rogue unit report. The auditing firm has also been slammed for its association with the Guptas, and the manner in which it handled the Linkway Trading account related to the wedding. Funds from the dairy farm in Vrede, in the Free State, were channelled to the wedding in Sun City in 2013.
Yesterday the DA said it welcomed the fact that IRBA would appear before the committee. David Maynier of the DA, who is a member of the standing committee on finance, said the work done by KPMG International on its local branch made it more urgent for IRBA to appear before Parliament. He said they were happy about the findings of the auditing firm on what the local branch has been up to.
The SACP yesterday also criticised Sars boss Tom Moyane on his comments related to KPMG, saying he used the same report by the auditing firm to fire people at Sars.
Moyane has threatened to sue KPMG and insisted that its report on the rogue unit still stands. SACP spokesperson Alex Mashilo said KPMG must face the same treatment as the Guptas.
“KPMG must be held accountable with immediate effect for its role in manufacturing the Sars rogue unit propaganda, and in converting the cost of the Waterkloof air base landing and Gupta wedding to a business expense,” said Mashilo.
“The wedding was reportedly funded from the looting of state funds from a dairy farm in Vrede, Free State. The fiasco shows how private companies such as KPMG are making use of their so-called credibility, which has become uncritically accepted, to legitimate wrongdoing,” he said.
MPs had been calling for action against those responsible for the diversion of funds from the Free State dairy farm to fund the Gupta wedding.
Yesterday the official opposition lodged more cases against international consultancy firm McKinsey for its role in the Eskom matter. McKinsey had denied it was in business with Gupta-linked firm Trillian.
This related to payments made by Eskom to the two companies.
Eskom is under investigation in Parliament by the portfolio committee on public enterprises.
The latest scandal on KPMG has cost it some of its clients. Sasfin and energy investment firm Hulisani dropped the auditing firm yesterday.