Sars to respond to KPMG's withdrawal of spy unit report

The auditing firm last week rescinded the findings and recommendations contained in the report, which saw the removal of several senior officials at the revenue service.

Picture: Supplied.

JOHANNESBURG – The South African Revenue Service (Sars) will this morning publicly react to KPMG’s decision to withdraw its report into the so-called Sars spy unit.

The auditing firm last week rescinded the findings and recommendations contained in the report, which saw the removal of several senior officials at the revenue service. It also cleared out its South African leadership, including the company's CEO.

Business advisor Reputation House says KMPG has taken a robust step in the right direction, but it has warned that the firm has a long road ahead to repair the damage it's done.

It's being argued that KPMG will have to do damage control in the next few months to regain its big clients and the confidence of the public.

However, Reputation House says it's unlikely that the firm will close and suffer the same consequences as Bell Pottinger.

However, chairman Dominik Heil says KPMG will have to focus on repairing its reputation.

“What they’ve done was a step in the right direction, but this will be a journey and we’ll see it unfold in front of our eyes.”

Former Finance Minister Pravin Gordhan released a scathing statement asking why the firm did not attempt to contact those who were victimised at Sars or why he wasn't contacted directly to convey a sincere apology.

(Edited by Shimoney Regter)