South Africa's FinMin calls for criminal probe into KPMG

South African law enforcement agencies should investigate KPMG after the global auditor sacked its local leadership over work done for business friends of President Jacob Zuma, Finance Minister Malusi Gigaba said on Friday.

 

KPMG is the latest international firm to become embroiled in factional battles within South Africa’s political establishment.

 

The dismissal of its top management in the country last week followed an internal investigation which found work it did for firms owned by the Gupta family, a trio of businessmen accused by a watchdog of improperly influencing the award of government contracts, “fell considerably short” of KPMG’s standards.

 

KPMG is already being investigated by the country’s Independent Regulatory Board of Auditors for its work for the Gupta firms and several South African companies are reconsidering their use of the firm.

 

Gigaba called on companies and other stakeholders to join hands and “(root) out bad elements” that undermine the South African economy.

 

“It is therefore, warranted and critical that the relevant law enforcements and bodies such as the Independent Regulatory Board for Auditors look into this matter to identify and sanction those responsible for any wrong-doing,” Gigaba said in a statement.

 

Gigaba also called on all government departments to consider reviewing their work with KPMG to ensure “their audit processes have not been compromised.”