Outcome of inquiry into KPMG delayed by four months

The Ntsebeza inquiry, which is investigating the alleged misconduct of the South African Institute of Chartered Accountants (Saica) members who worked for KPMG, is in the final stages of completing its report.

KPMG found itself embroiled in allegations of state capture involving the Gupta family and it also came under fire for its role in the SA Revenue Service (Sars) report into the so-called “rogue unit”, especially after it withdrew the findings and conclusions, but not the entire report.

This left the firm in a precarious position as clients started severing ties with it. In May, the inquiry said it would complete its report by the end of June, but there has been a four-month delay.

Advocate Dumisa Ntsebeza, who is leading the probe, said the inquiry had to accommodate additional hearings not expected at the time it announced that it would complete its report.

“As a result, the final legal arguments were received much later than the original deadline. The panel is now in the process of finalising the report,” he said.

Ntsebeza said the inquiry would soon be handing over its report to Saica, which would then if and when to release it to the public. “It will then also be up to Saica to decide how it wants to move forward based on the inquiry’s recommendations,” he said.

The international auditing and accounting firm also found itself in the middle of the VBS Mutual Bank scandal.

A damning report by advocate Terry Motau and Werksmans Attorneys, released in October, detailed looting at VBS bank of nearly R2bn and identified the role of political players.

Former KPMG partner Sipho Malaba, who approved the 2017 financial statements, received R34m from VBS, according to the report.

quintalg@businesslive.co.za