Business Leadership SA suspends KPMG

Business Leadership South Africa (BLSA) has suspended the membership of KPMG after launching an investigation into allegations of state capture that have ensnared the auditing firm.

Business Leadership South Africa (BLSA) has suspended the membership of KPMG after launching an investigation into allegations of state capture that have ensnared the auditing firm. Picture FILE

BLSA said the suspension followed a decision by its board.

“This follows a process of engagement with KPMG‚ allowing them to fully present their case‚ and consideration of the perspective of other important actors‚ such as the regulators‚” the business group said in a statement.

“We want to emphasise that our members remain unfettered by this announcement in how they respond in terms of individual engagement with KPMG.

“BLSA recognises the considerable steps announced by KPMG to change its leadership and commence a process of cultural change. It cannot‚ however‚ look past the gravity of their conduct which is completely inconsistent with the values of BLSA‚ contained in our Integrity pledge. We must live by example‚ and that starts with our own members.”

KPMG has been in damage control mode after it announced last week that it would withdraw a report on a so-called rogue unit at the SA Revenue Service (SARS).

The report was seen as being instrumental in the downfall of former finance minister Pravin Gordhan‚ who was facing potential criminal charges over his alleged role in setting up an illegal unit at SARS.

Gordhan has said he is considering taking legal action against KPMG.

The rogue unit allegations were linked to a plan to axe Gordhan‚ who was seen as a corruption buster and a foe of the controversial Gupta business family.

-TimesLIVE

 

Source: TMG Digital.

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