Another blow for KPMG as Institute of Directors suspends co-branded activities

It follows damning allegations revealed in June that the Free State provincial government largely picked up the tab for a lavish Gupta family wedding at Sun City.

Picture: Facebook.

JOHANNESBURG – KPMG has suffered another shock to its reputation with the announcement that the Institute of Directors has temporarily suspended all co-branded activities with the firm.

It follows damning allegations revealed in June that the Free State provincial government largely picked up the tab for a lavish Gupta family wedding at Sun City.

KMPG was allegedly involved in syphoning taxpayer's money to pay for the affair.

Assets management firm Sygnia has cut ties with the auditing company and now the Institute of Directors says it will make a final decision whether to suspend relations with KPMG permanently, once investigations have been completed.

The board of the Institute of Directors in Southern Africa has released a statement saying it's suspending events with KPMG, meaning the audit firm's sponsorship of its golf day next month has been cancelled.

The board will continue to monitor the matter until a standing decision can be made on future relations based on factual findings.

But for KPMG this is the second corporate casualty after Sygnia cut ties with the firm.

KPMG has denied knowing that the Guptas moved R30 million to pay for a family wedding, but the company has suspended a partner for attending the event.

Two other partners connected to the scandal have been relieved of their board and executive positions pending the outcome of comprehensive reviews.

(Edited by Zinhle Nkosi)