Kgosana welcomes KMPG’s decision to can Sars ‘spy unit’ report

Former KPMG South Africa head Moses Kgosana says it was the correct decision for top executives to step down.

FILE: Moses Kgosana. Picture: Twitter.

JOHANNESBURG - Former KPMG South Africa head Moses Kgosana says he accepts the international company’s decision to abandon its report into the alleged covert unit at the South African Revenue Service (Sars), saying it was the correct decision for top executives to step down.

This follows an internal investigation, which revealed serious failings at the firm.

The company’s CEO Trevor Hoole and eight senior staff resigned, while another faces disciplinary action and dismissal after KPMG launched an investigation into its work on behalf of the Guptas as well as for Sars.

Kgosana, who was CEO from 2007 to 2015, says he is working to clear his names.

“This report, if you read the wording section, it certainly does indicate that. Some even went as far as saying that I was corrupt and I had a corrupt relationship with the Gupta family. That certainly has been vindicated me from that point of view and that’s what I’ve communicating to the media.”

The report was partly responsible for the downfall of former Finance Minister Pravin Gordhan who was accused of having known about and endorsed the unit.

Leaked emails have revealed how the firm allegedly turned a blind eye to taxpayer funds being used to pay for the Gupta’s lavish sun city wedding.

KPMG has admitted that its report for Sars suggests Gordhan knew about the establishment of an intelligence unit that was set up illegally.

However, the auditing firm says this was not the intended interpretation and evidence provided to KPMG does not support this interpretation, saying it recognises and regrets the impact this has had.


Last week, Kgosana has denied that he was ever a Gupta “lapdog” and insists that his relationship with the family was strictly professional.

Kgosana appears to have been “haunted” by his relationship with the Guptas after being exposed in the leaked emails for questionable behaviour while he was CEO of the auditing firm.

Since then, he’s quit his position as chair at Alexander Forbes, and last week announced his resignation from Imperial.

Kgosana said this is part of good governance but emphasises that the matter is still under investigation and that the allegations are based purely on a newspaper article.

Kgosana also pointed out that he is not being investigated by the Independent Regulatory Board for Auditors but will co-operate if it is required because he has nothing to hide.

Additional reporting by Gia Nicolaides.

(Edited by Zamangwane Shange)