KPMG: Most of our work beyond reproach
The auditing firm's new chief executive Nhlamu Dlomu says the company’s work for the last three years will be reviewed.
CAPE TOWN - KPMG says there’s no systemic risk within its organisation and it’s open to an independent inquiry into its work.
The auditing firm has, however, conceded that its work for Sars and Guptas’ Linkway Trading did not meet its standards.
The company’s top executives are appearing before Parliament’s Standing Committee on Public Accounts today to defend the work it does for government.
KPMG chief executive Nhlamu Dlomu says the company’s work for the last three years will be reviewed.
She says the firm can’t back up conclusions reached in the now infamous Sars report on a so-called rogue unit because it doesn’t have the necessary legal expertise.
“We acknowledge the significance of getting those recommendations and conclusions incorrect.”
But Dlomu insists the majority of KPMG’s work is beyond reproach.
Members of Parliament, however, were suspicious of a full refund of R23 million to Sars for the withdrawal of three parts of the report.
They’ve suggested that the firm not bid for any more government work until it’s cleaned house.
WATCH: KPMG questioned by Scopa
KPMG has denied it turned a blind eye to questionable business dealings by Gupta-owned companies.
The firm audited the books of 35 of the family's businesses until it resigned last year.
KPMG's top executives have been asked about its audit of Oakbay's Linkway Trading, through which money intended for a Free State dairy farm was allegedly funnelled to pay for a lavish Gupta family wedding at Sun City in 2013.
Earlier this week the Independent Regulatory Board of Auditors (IRBA) told Parliament it's investigating KPMG's audit of Linkway Trading.
The DA's David Maynier today said it was difficult to believe that KPMG did not pick up any evidence of unlawful activity while it was the auditor for the Gupta companies.
But KPMG's interim chairperson of policy Gary Pickering would only concede that the 2014 Linkway audit was problematic.
Pickering also denied claims by the IRBA that KPMG has been reluctant to co-operate with its investigation, saying only that certain documents were outstanding.
(Edited by Shimoney Regter)