KPMG CEO in SA resigns following Gupta scandal
The audit firm has issued a major mea culpa on the Gordhan 'rogue unit' report
In a major mea culpa, KPMG SA has instituted a wide-ranging board clean-up that has claimed the scalps of CEO Trevor Hoole in the aftermath of the auditing firm’s dealings with the Guptas and the South African Revenue Service (SARS).
The latest developments follow a review of the company’s work with the Guptas and SARS, carried out by its international arm. KPMG has made a spectacular concession, saying that the findings, conclusions and recommendations of its SARS report should be withdrawn because it created the incorrect impression that former finance minister Pravin Gordhan knew about a so-called “rogue unit” at the tax authority.
The auditing company said it had communicated this to SARS and had offered to pay back the money it had earned in fees compiling the report.
Nhlamu Dlomu was also announced as KPMG SA’s new CEO on Friday morning.
Jacque Wessels, who oversaw the work KPMG did on nonlisted Gupta entities, would face disciplinary action.
Steven Louw has stepped down as chief operating officer and country risk management partner.
The board of KPMG SA said it accepted the findings and recommendations of the review.
Dlomu will be joined by Andrew Cranston from the company’s international network as interim chief operating officer.
Mike Oddy (head of audit and a member), Muhammad Saloojee (head of tax and a board member), Herman de Beer (head of forensic and a board member), John Geel (head of deal advisory) and Mickey Bove (risk management partner for deal advisory) will also be leaving KPMG SA, the company said on Friday.