Firm will face scrutiny from Parliament
KPMG is in the firing line of Parliament after the standing committee on public accounts demanded representatives of the auditing firm appear before it to account on its Sars rogue unit report and the scandals surrounding it.
KPMG faced mounting pressure from Scopa and the ANC in Parliament yesterday, following its decision to withdraw the “Sars Rogue Unit” report and fire seven executives.
Scopa chairperson Themba Godi said it was not over for KPMG as they wanted more answers.
He said if the firm wanted to continue doing business with government and its entities, it must come clean on the scandals.
KPMG allegedly converted wedding expenses, incurred by the Guptas for a family wedding at Sun City in 2013, to a business expense.
The Independent Regulatory Board for Auditors is already investigating the company over the Linkway Trading account in association with the wedding.
The Independent Regulatory Body for Auditors launched the investigation in June when the scandal broke and at the weekend said it was yet to be completed.
This related to funds allegedly channelled to pay for the costs of the wedding from a dairy farm in Vrede, Free State.
Opposition parties want answers on the diversion of R30 million from the dairy farm and they have opened cases against the Guptas.
Godi said they want the auditing firm to come to Parliament.
“Scopa intends to call KPMG to clarify its conduct and to justify why it should continue doing business with the state.
“Scopa has always warned against the heavy reliance on consultants,” said Godi. “Private audit firms must demonstrate that they have integrity and work in the public interest, beyond simply making a profit.
“Scopa will not hesitate to call on government not to use certain audit firms if they are found to be unethical,” he said.
Godi would not say how soon KPMG would appear before them in Parliament, but it is expected that this would happen soon.
He said KPMG’s decision to withdraw its report on the Sars rogue unit raised questions about its integrity and ethical conduct.
The ANC study group on Scopa also said the withdrawal of the report raised questions about the firm’s behaviour.
ANC whip in the study group Nyami Booi said they welcomed the decision by Sars to report the firm to Scopa.
Booi said KPMG must fully account for its conduct.
“As a firm which does business with various government departments and entities, we are concerned about the possible existence of similar actions where other departments and entities are concerned,” said Booi.
He said KPMG must be held accountable for its conduct and Parliament must act on it.
Private audit firms must demonstrate that they have integrity and work in the public interest