KPMG executives who resigned after Sars, Gupta fiasco paid exit packages

Lloyd Doyle
October 6, 2017

Last month the auditing firm's top SA leadership, including chief executive Trevor Hoole, chief operating officer Steven Louw, chairperson Ahmed Jaffer and five senior executives, resigned as the fallout over the ill-fated South African Revenue Services (SARS) report and the alleged close relations with the infamous Gupta family raged on.

The decision came hours after KPMG South Africa's chief executive told lawmakers the company would make sweeping changes to ensure the firm did not repeat "greatly disappointing" work it did for the three Gupta brothers. The firm is seeking to "restore trust, rebuild confidence and ensure that KPMG SA can once again earn the respect and trust of South Africans", she said Wednesday.

Munich Re of Africa, Sasfin Holdings, Sygnia Asset Management and Hulisani are among companies that have stopped using the accountancy firm's services.

Apart from the independent investigation, the firm is being probed by the country's regulatory body for auditors and the South African Institute of Chartered Accountants.

The KPMG officials at Thursday's sitting could not provide straight answers to pointed questions from MPs, leading to a series of embarrassing admissions from the firm, including that the nine executives who had quit in the wake of the controversies surrounding its work for the Guptas and SARS remained on its payroll and had been given golden handshakes.

The Guptas and Zuma deny wrongdoing and say they are victims of a politically motivated witch-hunt.

"The change in audit firm, which is effective immediately, was initiated by the company following the concerns recently raised regarding KPMG", Interwaste said in a statement.

The KPMG company sign sits at their offices in the financial district of Canary Wharf in London, U.K.

KPMG is at risk of losing some its major financial clients with Barclays Africa, Old Mutual, Investec, Standard Bank and Nedbank considering whether to drop it.

Dlomu said that action will be taken against implicated officials, and that any person found by the independent investigation to have failed to do their job would be held accountable.

"We are committed to taking appropriate action against those individuals", said Dlomu.

"It also revealed an astonishing degree of dishonesty, inefficiency, lack of professional integrity and lack of independence on the part of some of the auditors involved with these companies", Makwetu read from the report.

Other reports by Iphone Fresh

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