Sygnia axes KPMG over Gupta links
Sygnia CEO Magda Wierzycka tells M&G her meeting with KPMG failed to dispel ‘the perception that adequate oversight was not exercised’
JSE-listed asset management firm Sygnia has dumped KPMG over the auditing giant’s links to the Gupta family‚ the Mail & Guardian reported on Friday.
Sygnia CEO Magda Wierzycka held a meeting with KPMG on Tuesday and grilled it about the role it had played in recording suspicious transactions made by the Guptas’ Linkway Trading.
"The meeting didn’t dispel‚ in my mind‚ the perception that adequate oversight was not exercised‚" Wierzycka told the Mail & Guardian.
Leaked e-mails recently revealed that payments made to Linkway had been used to cover the costs of the notorious Gupta wedding held at the Sun City resort in 2013.
According to reports‚ KMPG had allowed Linkway to account for the wedding as a business expense.
Wierzycka said many unanswered questions remained‚ such as why KPMG did not query a R30m payment that was funnelled through various offshore accounts and used to fund the wedding. Reports have suggested that the source of the money was government funds intended for a Free State dairy project.
KMPG SA chief executive Trevor Hoole said he was disappointed by Sygnia’s decision.
The company has denied any involvement in state capture and said it had never condoned any alleged money-laundering activities‚ the newspaper reported.
KPMG also pointed out that it had in April last year resigned as auditors of the Gupta-owned Oakbay Group due to "associated risk".