KPMG Must Be Held Accountable – ANC Study Group

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In a statement issued by the ANC Study Group on the Standing Committee on Public Accounts (SCOPA), the ANC said it has noted KPMG withdrawing some aspects of their report on the South African Revenue Services (SARS) so called “Rogue Unit”. It has also taken note of the subsequent resignation of senior officials at this private auditing firm, said the statement.

Seven senior executive members of the auditing firm resigned last week Friday, and the firm appointed Nhlamu Dlomu as its new CEO. In a statement issued by the firm on Friday, it said, KPMG’s investigation did not identify any evidence of illegal behaviour or corruption but it did find that work done for Gupta family firms “fell considerably short of KPMG’s standards”, the auditor said in a statement.

“This has been a painful period and the firm has fallen short of the standards we set for ourselves, and that the public rightly expects from us,” new CEO Dlomu said.

However, Sars commissioner Tom Moyane, said the revenue service will not accept that the KPMG report into the so-called rogue unit within the revenue service is flawed, despite the consultancy’s announcement on Friday that the conclusions, recommendations and legal opinions contained in the report cannot be relied upon.

Moyane came out guns blazing at KPMG on Monday morning. He criticised the company for giving him a mere two hours’ notice before proceeding with its announcement on Friday.

The ANC’s Nyami Booi, who attended SARS briefing said, whilst we welcome KPMG admitting that their report on SARS lacked sufficient evidence to conclude findings of a “Rogue Unit” and offering to repay the R23 million fee it received for the work performed for SARS; we are of the view that KPMG must account on its involvement in what appears to be politically motivated immoral and unethical conduct,” he said in a statement.

“As a firm which does business with various government departments and entities, we are concerned about the possible existence of similar actions where other departments and entities are concerned. The withdrawal of some aspects of the SARS so called “Rogue Unit” report calls into question the integrity of KPMG as an auditing firm entrusted to do business with the state,” said Booi.

“We welcome today’s announcement by SARS stating that they are considering reporting KPMG to parliament through SCOPA with the aim to investigate the immoral conduct of KPMG,” he said.

“SCOPA will therefore be calling KPMG to appear before parliament to account on its conduct regarding the SARS so called ‘Rogue Unit’ report and the subsequent withdrawal of some parts of this report,” concluded Booi.

The similar call was also made by Chairperson of Scopa, Themba Godi on 702. Godi says the committee also has questions about the company’s work for Treasury on the Integrated Financial Management System project.