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KPMG to consider voluntarily withdrawal from bids in public sector

05 October 2017 11:45 PM
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KPMG to consider voluntarily withdrawal from bids in public sector

Auditing firm KPMG Chief Executive Nhlamu Dlomu says they are open to the suggestion to withdraw all bids in the public sector.(SABC)

Auditing firm KPMG Chief Executive Nhlamu Dlomu has told Parliament's Standing Committee on Public Accounts (Scopa) that the firm would consider a suggestion by Democratic Alliance Member of Parliament David Manier to voluntarily withdraw all bids in the public sector pending the outcome of investigation of the regulatory board for auditors into the conduct of KPMG.

KPMG executives were grilled before the public account watchdog body. This comes as more and more clients are leaving the embattled audit firm. MPs wanted to know whether KPMG will withdraw from doing work with government pending the outcome of the probe into its conduct.

“Will your firm voluntarily withdraw your bids in the public sector until the investigations have been concluded," DA MP David Maynier asked.

KPMG Chief Executive Officer Nhlamu Dlomu answered; “We are open to that and we are considering your suggestion and we will reflect on it."

The audit firm told Scopa that it has billed state institutions nearly R1.5 billion over the last three years for the work it has done and has 2022 contracts this year alone.

Dlomu said KPMG had made mistakes in relation to the work it did with SARS and the Gupta linked Oakbay Company but said none of the senior executives who have resigned have been charged.

In fact, she told the committee that they are still on the payroll of KPMG for the next three months in terms of their employment contract.

"Can I tell you what will provide me with comfort is when I see people being taken away in handcuffs," DA MP Timothy Brauteseth said.

KPMG says it broke ties with the Gupta linked companies in March 2016 after they identified certain red flags.

"Were there any criminal elements and did you alert the law enforcement,” Economic Freedom Fighters MP Ntombovuyo Mente asked.

'Yes, there were many red flags some of which are in the public domain,' KPMG's Gary Pickering answered.

However, Pickering declined to reveal the nature of the alleged crimes saying the law did not allow them to do so.

Source: sabc.co.za

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