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'Unlawful' KPMG South Africa under fire

22 Septembre 2017

"As a first step, significant actions were taken last Friday including the appointment of Nhlamu Dlomu as the new CEO of KPMG South Africa".

"We will engage banks and audit firms primarily to understand the context so we are better placed to manage any potential financial stability risk that may arise from the issues around KPMG", Governor Lesetja Kganyago said on Thursday.

In response to a request from the global chairperson of KPMG International, Mr John Veihmeyer, Mr Pravin Gordhan and Mr Mcebisi Jonas met with a delegation led by Mr Veihmeyer.

A KPMG report on an alleged illegal unit at the tax authority, since withdrawn by the firm, was used as evidence in a criminal investigation of Gordhan.

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

Gordhan and Jonas were unsparing in their criticism.

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He added, "KPMG South Africa made serious mistakes and errors of judgement in these engagements".

"KPMG has a moral duty to account for its conduct to the South African public and they have to be frank, unequivocal and transparent".

An internal investigation by KPMG has revealed failure over the company's work for Gupta owned firms and Sars.

The Reserve Bank will meet representatives of SA's banks on Thursday to raise concerns over possible negative consequences should auditing firm KPMG be forced to close its doors over the South African Revenue Service (SARS) scandal it was embroiled in, people familiar with the matter said on Wednesday.

KPMG became the third global firm to be damaged by work carried out for the Indian-born brothers after the business consultancy McKinsey and the public relations agency Bell Pottinger, whose British business collapsed last week.

'Unlawful' KPMG South Africa under fire