Compromised and in a corner
How KPMG’s apology fell flat
Investigations by the CIPC and auditors’ board add to the internal review of the audit firm’s relations with the Guptas
Sygnia CEO Magda Wierzycka, who fired KPMG last month, has no plans to rehire the compromised auditing firm, on the back of its admission that it should have stopped working for the Gupta family sooner, she has told the Financial Mail. That the firm was unable to see signs of potential danger until very late in the day is remarkable, given that a major part of its business is advising corporates on anti-bribery and corruption. Lewis is particularly irked by KPMG’s stance on its notorious SA Revenue Service (Sars) report. "Because it wasn’t part of [KPMG’s] audit business, the report escaped scrutiny by any professional body," says Lewis, alluding to the inevitable dangers of powerful audit firms being able to offer a range of services to clients. Lewis says the Sars report, which included allegedly damning findings against former Sars chief and finance minister Pravin Gordhan, was a key part of the state-capture plan. KPMG was paid R23m for the ostensibly independent report, though ...