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KPMG SA apologises for scandals

Seeks second chance.

KPMG, the auditor that shed clients and staff after scandals in South Africa, apologises for its “misdeeds” and wants a second chance to reestablish its business in the country, chairman Wiseman Nkuhlu said.

The firm, one of the so-called big four global auditing companies, confessed to publishing a misleading report on the South African Revenue Service that led to a police probe of a former finance minister, did work for the Gupta family who have been implicated in corruption scandals linked to former president Jacob Zuma, and acted as an auditor for a bank that collapsed due to alleged fraud. Its eight top staff resigned in September 2017, some of the biggest companies in South Africa have replaced it as their auditors and in June it said its workforce had shrunk to 2 200 from 3 400.

“KPMG had made a lot of serious mistakes and lost the trust of the public and clients,” Nkuhlu said in an advertisement placed in South Africa’s Sunday Times newspaper. “We had lost sight of our responsibility to serve the broader public interest.”

The company is one of a number of international firms that have apologised for their conduct during the nine-year rule of Zuma, which ended in February, during which time corruption at state companies became endemic. Bain & Co has started an independent probe into its own work for South Africa’s tax service, while McKinsey and SAP have accepted responsibility for improper work done for state-owned companies.

“We know we made mistakes and we will accept responsibility, as appropriate, for our misdeeds,” Nkuhlu said. “In return, I would like to make an appeal to South Africa business, government and the public. An appeal for your recognition that KPMG South Africa is today a very different business to what it was 18 months ago.”

The company, which has lost clients including Barclays Africa and Dimension Data, is seeking to win back trust, he said.

We “appeal for your permission, for KPMG South Africa and the thousands of South Africans who work for it, to continue to play a positive role in the business community and the life of the nation,” he said.

Read:

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KPMG has a serious problem with integrity in their culture and it goes back a long time, way before the Gupta story. Barry Sergeant in his book “The Kebble Collusion” (15 years of forensic research) devotes a whole chapter on the way whole Kebble/Rand Gold Exploration saga was handled by KPMG and basically swept under the carpet. There is something seriously wrong about the way KPMG runs its business and this cheap “apology” isn’t going to do the trick.

KPMG needs to fail completely in South Africa both as a warning and a case study of the hazards of getting into bed with corruption.

The “apology” has only been issued because they got caught out supporting corruption, numerous times.
Too little, too late – KPMG cannot to be trusted as an Auditor!
They should just close down.

The Worm turns for KPMG !

KPMG at the Heart of the cover-up and redefined the meaning of ‘conflict of interest’ (..and no better optimised than in the disputes between JLCO , which was appointed as forensic auditors for Randgold, and KPMG services.

KPMG – are you also apologising and admitting your conduct and roles in the Kebble-gate and Investec-gate shenanigans – as alluded to by Barry Sergeant in his book – The Kebble Collusion?
If not – you might have to explain why you allowed Randgold Resources shares to be stolen, in one way or another, through T-sec (under CEO Peter Henry – Brett Kebble’s lackey – ‘’helicopter view’’ and watch).
KPMG, you were appointed both internal and external auditors at T-Sec hence you should have known the finest detail what happened to all the stolen shares, to the tiniest detail!

When are the US authorities going to take action against KPMG?

Best they close shop and leave SA, they will always be associated with the Zupta’s.

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