Published: Fri, September 22, 2017
Economy | By Annette Adams

KPMG global chairman apologises over South Africa scandal

KPMG global chairman apologises over South Africa scandal

South African central bank is concerned about "regrettable accounting practices" at the local unit of auditor KPMG [KPMG.UL], Governor Lesetja Kganyago said on Thursday.

"The Gold Fields board of directors has considered the matter and will be closely following future developments in this area".

"We shared our strong feelings and disapproval of the manner in which KPMG SA has been involved in. corruption in respect of both the South African Revenue Service (SARS) and companies of the Gupta family", Gordhan and Jonas said in a joint statement after the meeting."KPMG has a moral duty to account for their conduct to the South African public and they have to be frank and transparent in their disclosures if they wish to restore their own reputation".

KPMG, one the world's so-called big four accountancy firms, is emerging as the most prominent global company to be snared in the South African scandal, after admitting that work for the Guptas fell short of acceptable standards.

"As a measure to restore confidence in audits, all of government and its entities must consider reviewing their work programmes with KPMG, to ensure that their audit processes have not been compromised in any way, and to take appropriate steps if it has been compromised", he said.

Former Finance Minister Pravin Gordhan weighed in, telling the company's global chairman, John Veihmeyer, that he strongly disapproved of the firm's work relating to South Africa's tax authority.

The Board of Business Leadership South Africa (BLSA) has chose to suspend the membership of KPMG (SA) pending the outcome of an independent investigation into the organisation's involvement in conduct related to "state capture" in South Africa.

The Guptas have been accused of obtaining lucrative contracts in exchange for favours to those in power, and even influencing ministerial appointments. It filed a complaint against public relations firm Bell Pottinger for fostering racial division in South Africa with the main industry group in the United Kingdom, which led to its expulsion and forced it into administration. The Guptas and their companies have not been charged with any crime, but the scandal is one of many that have dogged the Zuma presidency.

The Guptas and Zuma deny wrongdoing and say they are victims of a politically motivated witch-hunt.

"I want to apologise to the public, our people and clients for the failings that have been identified by the investigation", she said.

Like this: