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KPMG was also implicated in the massive South African "state capture" scandal involving the (now fugitive) Gupta family and former president Jacob Zuma. Among
by buyx 9y ago
KPMG was also implicated in the massive South African "state capture" scandal involving the (now fugitive) Gupta family and former president Jacob Zuma.
Among other things, KPMG issued a-later withdrawn-report that was used to undermine the well-respected finance minister, so that a more malleable person could be installed, while also auditing the Guptas during their worst excesses.
Lest we choose to dismiss this as crimes in an insignificant country, KPMG SA has been part of the worldwide group since the 70's, and South Africa's supposedly high auditing standards were a source of national pride.
The story seems to have gone dead after some senior leaders fell on their swords, but six months ago, there was serious talk about the firm being shut down in South Africa.
- sizzle 9y agoSounds interesting, got any sources for further reading?
- mmsimanga 9y agoTwo links should give you a summary of the issues. I worked one of the biggest retailers in South Africa until a month ago. We dropped KPMG as our auditors because of all the unethical issues relating to them. https://mg.co.za/article/2017-09-15-gordhan-weighs-in-on-kpmg https://mg.co.za/article/2017-09-15-gordhan-weighs-in-on-kpm... And https://www.dailymaverick.co.za/article/2017-09-11-op-ed-the-kpmg-failure-ethical-test-for-sa-business-and-company-directors/ https://www.dailymaverick.co.za/article/2017-09-11-op-ed-the...
- buyx 9y agoFT had a lot of coverage, if you're looking for a non-South African source (linking behind the paywall is probably not going to work, but you can Google for it). https://www.bloomberg.com/news/articles/2017-09-22/kpmg-under-fire-in-south-africa-for-work-done-for-gupta-family https://www.bloomberg.com/news/articles/2017-09-22/kpmg-unde... https://www.telegraph.co.uk/business/2017/09/15/kpmg-south-africa-managers-resign-gupta-scandal/ https://www.telegraph.co.uk/business/2017/09/15/kpmg-south-a... https://www.reuters.com/article/us-kpmg-safrica/kpmgs-south-africa-bosses-purged-over-gupta-scandal-idUSKCN1BQ16P https://www.reuters.com/article/us-kpmg-safrica/kpmgs-south-... http://www.bbc.com/news/business-41283462 http://www.bbc.com/news/business-41283462 It's also been extensively covered in the South African media.