Pressure Mounts Against KPMG As BLF Plan Intensify To Protest

PICTURE: The Huffington Post

The Black First Land First (BLF) will on Thursday lead a protest to the head office of the troubled auditing firm KPMG.

The BLF says the protest is a follow up to the march occurred on 28 September where the movement gave KPMG 7 days to respond to its demand. It is understood that the auditing firm promised to respond but has failed to do so in two weeks.

In September, the movement handed a memorandum to KPMG demanding that all audits and investigations by KPMG should be reviewed and also call on the auditing firm to withdraw its report upon which the 783 charges against President Jacob Zuma.

The move comes after the Gupta leaks revealed that KPMG South Africa failed to inform stakeholder when business controlled by the Gupta Family diverted R30 million of public funds to pay for a family wedding. A number of companies joined hands in boycott of the international auditing firm KPMG.

The BLF claims that KPMG apologies for being an agent of white monopoly capital and regime change; it also added that the auditing firm must reveal the pressure put on it by former Finance Minister, Pravin Gordhan, agencies to withdraw its report on the rogue unit at SARS.

The movement has confirmed that it has not yet received any response following its demand, saying it will start a nonstop and often surprise protest until satisfactory response has been given.

Early this year, the Fintech was the first corporate to terminated its contract with KPMG following reports of the state capture. Sasfin Bank also terminated its activities with the auditing firm saying it will change its independent sponsor from KPMG servicers to Deloitte.

The decision has been executed after emails linked to the Guptas containing irregular tenders were exposed through a string of emails, commonly known as #GuptaLeakes.

Sasfin CEO Roland Sassoon said at the time, “the Gupta saga had been a key in its decision, there’s this dark cloud over KPMG and we don’t want to pass judgment so will see how the dust settles.” KPM has been in business with Sasfin Bank for over 18 years.

The bank added that it plans to replace KPMG with PwC at the next month annual general meeting,

Meanwhile, last month the South African Revenue Services (Sars) threatened legal actions against KPMG for reputational damage caused when the auditor released details of confidential reports it had compiled for the tax office.

In September, the Institute of Directors in South Africa (IoDSA) joined the boycott of KPMG after it announced that “the institution will consider suspending co-branding activities with KPM including sponsorship of its golf day and involvement in the audit committee forum.”

It is understood that the institution parted way with KPMG after the auditing firm covered irregular audit over the Gupta-owned company which use state money to fund the 2013 Sun City weeding.

Both Parliament and Hulisani also announced that it has cut ties with KPMG following allegations of corruption against the firm.

The deputy speaker of the National Assembly, Lechesa Tsenoli, declared that the decision has been executed after concerns arise towards KPMG after it admitted that the corporate has failed to maintain its Constitution.

The protest is expected to start in the early hours of Thursday morning and rest at the headquarters.