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KPMG suspends partners after Gupta links exposé

11 August 2017 2:21 PM
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The lead audit engagement partner and two other executives who worked on the Gupta account will be suspended.

CEO of KPMG South Africa Trevor Hoole has reiterated that the company’s reviews have, to date, “not found any evidence of dishonesty on the part of the partner”.

In a press statement issued this afternoon, the company said it had decided to suspend the lead audit partner, and added “two other partners who were connected to these matter will be relieved of their board and executive positions pending the outcome of the comprehensive reviews, and further action will be taken as appropriate”.

Apologising for its role in clearing Gupta-linked companies of irregularities, KPMG said “mistakes have been made and painful lessons learnt”.

KPMG cleared Gupta-linked company Linkway Trading after it conducted audits on it, but Linkway Trading was found to have entertained a KPMG director at a three-day lavish wedding in Sun City.

Part of the #GuptaLeaks revealed that a KPMG executive working directly on Linkway Trading gushed to the Guptas after attending the wedding, where guests illegally landed at Waterkloof Military base en route to Sun City.

“This was a wedding of the century,” a #GuptaLeaks report quoted the implicated official.

There was widespread criticism of KPMG after it emerged it failed to detect irregularities, as Linkway Trading was involved in alleged tax evasion and money-laundering.

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