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KPMG South Africa suspends partner pending Gupta work review

Two others ‘relieved’ pending the result of its investigation.

KPMG’s South African office suspended its lead audit-engagement partner and “relieved” two others pending the result of its investigation of the work that the firm did for companies linked to the Gupta family, whose members are friends with President Jacob Zuma.

KPMG resigned as auditor for the family’s businesses in March 2016 “and should have stopped working for the Gupta companies sooner than we did,” Trevor Hoole, the chief executive officer of the firm’s office in South Africa, said in an emailed statement Friday.

KPMG South Africa failed to raise alarms when businesses controlled by the Gupta family diverted the equivalent of R30 million ($2 million) of public money to pay for a family wedding, according to emailed communication. The papers are part of a trove of documents known as the Gupta Leaks, which the amaBhungane Centre for Investigative Journalism has access to and has based stories on. Bloomberg couldn’t independently verify the information. Zuma and the Gupta family have denied any wrongdoing.

The unfolding scandal of how the Gupta family used its closeness with Zuma to win billions of rand worth of contracts from state-owned companies and influence government appointments and decisions has led to challenges to the president’s leadership — including failed no-confidence votes — and has weakened the currency.

All aspects of KPMG South Africa’s work related to the Gupta group “is being robustly reviewed, including client acceptance, execution and the quality of the work,” Hoole said. “Where any problems or issues are found, those KPMG individuals responsible will be held accountable.”

The review, which is being led by “an experienced senior partner” from the KPMG network and has law firm Norton Rose Fulbright as external legal counsel, hasn’t found any evidence of dishonesty on the part of the suspended partners, Hoole said.

© 2017 Bloomberg

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Good for KPMG.

But what about the NPA and the theft of the R30 million? It seems the NPA is doing NOTHING! as usual except protecting the crooks in government and their friends and masters.

“The review, which is being led by “an experienced senior partner” from the KPMG network and has law firm Norton Rose Fulbright as external legal counsel, hasn’t found any evidence of dishonesty on the part of the suspended partners, Hoole said.”

OK, so who then signed off on the idea that a business will justifiably pay for a private event like a wedding?

What took them so long??

No ‘dishonesty’ found. How comforting is that for future KPMG audits when they sell services at top dollar and clients and investors require professional and competent and ethical aspects?

KPMG partners: fire your CEO and exco – they simply missed the opportunity to show that they care

Will KPMG’s audits at the Guta’s all be labelled ‘’unaudited and disclaimed’’?

Quote from Business Day: February 26, 2016
‘’Senior SARS officials — including Mr Pillay, head of investigations Johann Van Loggerenberg, and head of risk and strategy Peter Richer — were axed or departed after lengthy suspensions. Mr Gordhan too was targeted after a leaked copy of a KPMG document reportedly recommended that he be questioned about the unit.’’
My view is that Tom Moyane from the South African Revenue Service is hiding behind the so-called KPMG leaked report.
Mr Pravin Gordhan should study this KPMG report in the finest detail and he should also read through Barry Sergeant’s ‘’The Kebble Collusion’’ to acquaint himself with KPMG’s modes operandi”.
According to Barry, KPMG’s forensic report for JCI dated May 8, 2006, was ‘’destined to become one of the most controversial documents in the entire aftermath of the Kebble saga.
How much did JCI eventually pay KPMG?
KPMG Audit fees – for the six years ended March 31, 2013 was an unbelievable R 45,2 million (according to another article by the same author,’’ KPMG forensic division’s front man for the JCI forensic investigation, Dean Friedman, was not a chartered accountant but a numerically illiterate lawyer – designed to defend their client JCI and mostly anyway, gobbledegook and schlock.’’
Were the KPMG report ever published? No!
I also believe anybody can run but you cannot hide, and the Randgold Minority shareholders, in their claim of R1.3 against Investec in the North Gauteng high court, might still one day discover why KPMG got paid so much money for a report that minority shareholders never saw!

Which also begs the question :

Did Norton Rose Fullbright (as internal and external) do any work and/or/advise the Guptas on any issue (financial or other) before ?

I think that if they did, they are also compromised this investigation !

I think that KPMG due to its role, that #Guptaleaks uncovered, is conflicted – as KPMG also seems to be with a plethora of companies

You should have gotten your license revoked.

Instead of SAICA spending thousands on bragging how good their members are they should investigate KPMG’s role in the sordid Gupta/ Free State Government theft to fund a wedding.

I smell a cover-up! Unfortunately the ethics of most professional bodies merely serve as lip-service…IRBA and SAICA should lead the way in investigating those found responsible…the buck has to stop somewhere…

Just Targettting Guptas via fake stories….Nothing else….

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