S.Africa's c.bank concerned about KPMG; chairman meets former finance minister

Andrew Cummings
September 22, 2017

In work unrelated to Gupta companies, KPMG said it had compiled a report for the South African Revenue Service that had inadvertently been used as evidence that Gordhan knew of the creation of a rogue intelligence unit.

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

"We will engage banks and audit firms primarily to understand the context so we are better placed to manage any potential financial stability risk that may arise from the issues around KPMG", he said.

KPMG's problems have only compounded since its internal investigations found that senior management had not met quality standards in working with Gupta-owned and linked companies, which resulted in eight senior executives, including the CEO, resigning.

"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 has argued that KPMG has assisted in the state capture of South Africa.

The South African Institute of Chartered Accountants, or SAICA, said it would on Friday announce the establishment of an independent commission of inquiry "into the conduct of certain members of SAICA employed by KPMG".

"Gigaba called on companies and other stakeholders to join hands and "(root) out bad elements" that undermine the South African economy.

The suspension is pending the outcome of an independent investigation into the organisation's involvement in conduct related to state capture in South Africa.

The Democratic Alliance, the biggest opposition party, said in a statement it will review all KPMG contracts in the the more than 30 municipalities it controls.

KPMG further said it would donate the R40 million it earned in fees from Gupta-controlled firms to charity and refund the R23 million from the controversial Sars report.

Earlier this month, links to the Guptas caused the British arm of public relations firm Bell Pottinger to collapse.

But both President Zuma and the Guptas have denied wrongdoing, crying out loud that they were being politically witch-hunted. The Guptas and their companies have not been charged with any crime.

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