KPMG admits going to the Gupta wedding was a bad idea
The audit firm is bringing in a chief risk officer as it addresses a lack of ‘professional scepticism’
KPMG SA has conceded that its management team should not have attended the Guptas’ 2013 wedding in Sun City, saying it regretted its association with the politically connected family. The auditing company has instituted a wide-ranging boardroom and executive clean-up, and will bring in a chief risk officer as part of sweeping measures to beef up its internal governance, which had been found wanting by its international arm. This review found that KPMG SA had ignored "red flags" during the course of the Guptas’ bid to buy Glencore’s Optimum Colliery, but stressed that it had limited involvement in the controversial transaction. Crucially, KPMG SA had been aware of, but ignored, "information which put the Guptas’ integrity into question". "We got it wrong," said Andrew Cranston at KPMG’s Johannesburg offices on Friday morning, while delivering a stinging assessment of the auditing company’s work for the Guptas and the South African Revenue Service (SARS). Cranston, of KPMG Internation...
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