DA refers KMPG to Independent Regulatory Board for Auditors

Issued by Kevin Mileham MP – DA Shadow Minister of Cooperative Governance and Traditional Affairs
28 Oct 2018 in News

The Democratic Alliance has written to the Independent Regulatory Board for Auditors (IRBA) requesting a thorough review of KPMG’s conduct over the last three years.

KPMG has been implicated in the “Great Bank Heist”, after they allegedly turned a blind eye to irregularities and corruption at the bank. Today, it emerged that millions of rands in donations may allegedly have been made to the ANC, at the behest of then-ANC Treasurer-General Mkhize Zweli, but KPMG failed to flag these irregularities.

The auditing firm has also been implicated in various ANC/Gupta state capture fiascos, as well as authoring the SARS “Rogue Unit” Report.

Corruption is not a victimless crime as demonstrated from the VBS heist that directly impacted South Africans, especially the poor. KPMG’s apparent corrupt collaboration with ANC elites has cost South Africa dearly, and we are still footing the bill.

Necessary enforcement actions need to take place to ensure that KPMG is held accountable for any misleading and/or fraudulent reports.

KPMG has not met the necessary standards required to perform its vital function, and as such, the firm may be in breach of its fiduciary and legal responsibility.

The firm’s actions have cast a dark shadow over the audit profession, which has a vital role to play in the fight against corruption.

By turning a blind eye to numerous allegations of misconduct, KPMG has effectively facilitated corruption and has brought into question the controls, checks and balances at the firm.

The DA trusts that IRBA will probe KPMG’s role in these scandals to ensure that the necessary enforcement action is taken to ensure that the firm is held accountable for any misleading and/or fraudulent reports.