IRBA probes KPMG over an audit on Gupta company

The IRBA launched the probe after the Gupta leaks suggested govt funds meant for FS projects were used to pay for a Gupta wedding.

FILE: KPMG SA logo. Picture: Facebook.

CAPE TOWN - The Independent Regulatory Board for Auditors (IRBA) is investigating whether KPMG flouted regulation in its audit of a company owned by the Gupta family.

The audit watchdog launched the probe this week after the latest in the Gupta leaks suggested government funds meant for Free State empowerment projects were used to pay for a Gupta wedding attended by a KPMG executive.

An investigation by AmaBhungane and Scorpio shows a series of money transfers between the provincial government and companies owned by the family.

It further shows one of the companies Linkway Trading, which paid for the wedding, invoiced another Gupta company for the wedding expenses.

It's reported when KPMG audited its books, the firm allowed Linkway to be reimbursed for the expenses by a related company.

IRBA chief executive Bernard Agulhas said, “When there’s any indication that the auditors might have been involved in any misconduct, when such misconduct is reported and we will see if there is a link to the auditors. Because not all misconducts necessarily involve the auditors.”

He adds, however, there are issues that have to be looked at in this case.

“From this particular case, from the media and what we’ve seen so far, we’re a little concerned about independence.”