KPMG admits going to the Gupta wedding was a bad idea

KPMG admits going to the Gupta wedding was a bad idea

KPMG admits going to the Gupta wedding was a bad idea

Five other partners are also leaving the firm, and KPMG is.

"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", said Nhlamu Dlomu, who has been promoted internally to succeed Hoole.

The audit firm has now offered to pay back the R23 million it received for its work on the report or donate it to a charity and to donate R40 million to non-profit organisations fighting corruption.

McKinsey is carrying out its own investigation, but has denied wrong-doing.

Mike Oddy, Head of Audit and Board member, Muhammad Saloojee, Head of Tax and Board member, Herman de Beer, Former Head of Forensic and Board member, John Geel, Head of Deal Advisory and Mickey Bove, Risk Management Partner for Deal Advisory.

Gordhan previously slammed KPMG for the report.

KPMG South Africa insists there was no political motivation behind its report on the unit. "It's allegations that have no foundation. One thing I would like to request from you is to stop reporting on rumours".

KPMG is one of four worldwide firms which have launched major investigations into their work with the Guptas.

The auditing firm enjoyed close ties with its Gupta clients well beyond office duties including four KPMG partners attending a lavish Gupta family wedding in 2013.

"To be clear, the evidence in the documentation provided to KPMG South Africa does not support the interpretation that Mr Gordhan knew - or ought to have known - of the "rogue" nature of this unit", said KPMG.

"While the investigation did not identify any evidence of illegal behaviour or corruption by KPMG partners or staff, this investigation did find work that fell considerably short of KPMG's standards", said KPMG International, which published a 10-page report on its investigation into the South African arm. However, the investigation established that management of many Gupta entities responded misleadingly and inadequately to audit teams' enquiries about the nature of related party relationships and the commercial substance of significant unusual transactions. This, after it was expelled from a PR body for its work done for the Guptas.

Mmusi Maimane, leader of the opposition Democratic Alliance, called for a criminal probe into "state capture", a term used to refer to the Guptas' alleged undue influence over government decision-making.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.