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KPMG statement may assist Hawks probe into Guptas: DA

17 September 2017 - 12:18 By Timeslive
Ajay Gupta and his younger brother Atul. File photo.
Ajay Gupta and his younger brother Atul. File photo.

The Democratic Alliance says it has handed a copy of KPMG International’s statement on its probe into work performed on behalf of the Gupta family to the Hawks.

DA spokesman on finance David Maynier said the statement may assist in the investigation being conducted by the Hawks into the Guptas.

He said the DA welcomed the KPMG investigation which had resulted in the purge of seven senior executives from KPMG South Africa.

The investigation into the audits of Gupta entities‚ including Linkway Trading (Pty) Ltd‚ a South African company‚ controlled by the Guptas‚ which was allegedly involved in tax evasion‚ established that: - “management of many Gupta entities responded misleadingly and inadequately to audit teams enquires about the nature of related party relationships and the commercial substance of significant unusual transactions”

The investigation also identified: - “a series of misrepresentations from the client over the period that KPMG South Africa provided tax advice.”

Maynier said this meant that KPMG International‚ as well as KPMG South Africa‚ might have information that was vital to the investigation being conducted by the Hawks into minerals resources minister Mosebenzi Zwane‚ Atul Gupta‚ Ajay Gupta‚ Rajesh Gupta‚ Ronica Ragavan and Kamal Vasram for alleged:

  • racketeering‚ money laundering‚ assisting another to benefit from the proceeds of unlawful activities‚ and acquiring‚ possessing or using the proceeds of unlawful activities in terms of the Prevention of Organized Crime Act (No. 121 of 1998); and
  • submitting false‚ or untrue‚ tax returns in terms of the Tax Administration Act (No. 28 of 2011).

“The investigation follows criminal charges laid by myself on 03 July 2017 after revelations that public funds‚ meant to assist the poor‚ were allegedly washed through a complex web of front companies‚ and used to pay for Vega Gupta and Aakash Jahajgarhia’s wedding at Sun City in 2013

“I have‚ therefore‚ furnished Major-General Zinhle Mnonopi with a copy of KPMG International’s press statement released on 15 September 2017‚ which may assist in the investigation being conducted by the Hawks‚” Maynier said.