South Africa's Gigaba calls for criminal probe into KPMG

South Africa Finance Minister Malusi Gigaba. (Photo: Courtesy)

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

KPMG dismissed its South African division’s top management last week following an internal investigation which found that 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.

Factional battles

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

The firm 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 KPMG.

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”.

South Africa’s tax agency on Monday said it would cut all ties with KPMG and assess work the auditor had performed in the last 10 years.

Lobby group Business Leadership South Africa also suspended KPMG’s membership yesterday, citing the “gravity” of its conduct over the auditor’s work for Gupta firms.