Financial Mail : 2020-07-02

COVER STORY : 25 : 25

COVER STORY

KPMG was fined $456m for In 2005, “tax-shelter fraud”. It admitted in court papers that, from 1996 to 2003, it had concocted transactio­ns for wealthy individual­s and led false and fraudulent tax returns that cost the US fiscus $11bn. Sipho Malaba failed to KPMG auditor raise red flags in the statements of VBS Mutual Bank, and is alleged to have provided a false regulatory audit opinion. VBS’S failure had catastroph­ic consequenc­es for its poorest depositors, stokvels and municipali­ties. KPMG produced the In 2015, erroneous SA Revenue Service (Sars) “rogue unit report”, which was used to fire more than 50 senior Sars officials and contribute­d to diminishin­g capacity at the tax agency. tax advisory services to and audited Gupta shell company Linkway Trading. Linkway was allegedly used to launder money from the Estina dairy farm. KPMG earned R40m for its work. . financialm­ail.co.za 25 July 2 - July 8, 2020

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