Gordhan‚ Jonas want full disclosure by KPMG on its role in state capture
Pravin Gordhan and Mcebisi Jonas have insisted on a full disclosure by KPMG of the role of various parties in state capture and the manner in which KPMG staff seemed to have colluded in the process.
Gordhan‚ the former finance minister and Jonas‚ his former deputy‚ met chairman of auditing firm KPMG International John Veihmeyer at the latter’s request on Thursday.
Gordhan‚ the former finance minister and Jonas‚ his former deputy‚ met chairman of auditing firm KPMG International John Veihmeyer at the latter’s request on Thursday.
The new CEO of KPMG SA Nhlamu Dlomu also attended.
The meeting follows an announcement by KPMG last Friday that it had concluded its investigation into the firm’s handling of numerous Gupta accounts.
KPMG also announced last Friday it was withdrawing its findings on the South African Revenue Service’s (SARS) so-called rogue unit.
The report was partly instrumental in the downfall of Gordhan‚ who was accused of knowing and endorsing the "rogue unit".
KPMG also announced last week that nine senior executives had been asked to resign‚ including CEO Trevor Hoole.
Following last week’s announcement‚ Gordhan said KPMG had not acknowledged the damage done to the country and said it needed to apologise to the people of South Africa.
Gordhan also said the company's announcement also "falls short of acknowledging that senior people (in government) have been cast aside and left without jobs”.
Following the meeting on Thursday‚ Gordhan and Jonas indicated in a statement that while they had agreed to meet KPMG‚ they reserved their rights.
“We shared our strong feelings and disapproval of the manner in which KPMG SA has been involved in the validation of state capture and corruption in respect of both Sars and the Gupta companies.”
Gordhan and Jonas insisted on full and proper disclosure of the role of various parties in state capture and the manner in which KPMG staff seemed to have colluded in these processes‚ including the complete disregard shown by management of KPMG.
Gordhan and Jonas said the KPMG delegation asked for the recognition of their commitment to SA.
“Clearly‚ given the inadequacy of their earlier statement‚ the further steps KPMG takes to be more open and frank with South Africans will determine whether KPMG can earn the respect and confidence of both corporates and the South African public in the firm and the audit profession‚” the statement read.