KPMG entangled in state capture web
Rough year for power utility
EMBATTLED audit firm KPMG enters 2018 with question marks around its future in South Africa following its entanglement in the Gupta state capture web. The firm is under investigation by both the Independent Regulatory Board for Auditors (Irba) and the SA Institute of Chartered Accountants (Saica) for failures in the work it did for the Gupta family and state entities.
In October, KPMG also withdrew its report on a probe into the existence of the Sars “rogue spy unit” and said that its audit on Gupta-owned Linkway fell below standards. This sees a litany of JSE-listed companies cutting ties with the firm, most notably TFG and Sasfin. Blue chip companies like Barclays Africa and Investec say they are reviewing their relationship with the firm.
KPMG top leadership in South Africa, including chief executive Trevor Hoole, chief operating officer Steven Louw, chairperson Ahmed Jaffer and five senior executives resign as the firm scrambles to salvage whatever is left of its battered image.
Brenda Kali, chief executive of Conscious Companies, says the country has seen more than its fair share of looters, pervasive greed and cheaters this year. “Corporate indifference, trickery and thievery have become all too insidious and demand that we evaluate and examine the behaviour of leadership,” Kali says. – Kabelo Khumalo 2017 WILL go down as one of the most turbulent years in Eskom’s history, with the power utility still without a permanent chief executive after Brian Molefe controversially sauntered back into his old job in May, only to be quickly shown the door.
The legality of Molefe’s reappointment is the subject of a high court case. While the board’s daring stunt to reappoint Molefe left many frothing at the mouth, it was the details that emerged from Parliament’s inquiry into state capture that confirmed what many had suspected – that Eskom is a cesspool of corruption, poor governance and zero accountability.
It was also at the hearings that Public Enterprises Minister Lynne Brown’s role in the crisis came under the spotlight as she obfuscated and fumbled over the simplest questions.
This from a minister who does not like the attention one bit. Sadly, the dramatic shenanigans have overshadowed the utility’s finances, which are in bad shape. Depending on who you talk to, Eskom is either “in a precarious financial position”, “facing a liquidity crunch” or just “broke.”
Eskom’s finances are a source of concern. – Siseko Njobeni