Business Leadership South Africa suspends KPMG membership

The suspension is pending the outcome of an independent investigation into the organisation’s involvement in conduct related to state capture in South Africa.

KPMG's Johannesburg offices. Picture:

JOHANNESBURG - Business Leadership South Africa (BLSA) has decided to suspend KPMG's membership pending the outcome of an independent investigation.

The BLSA board says it recognises the considerable steps announced by KPMG to change its leadership and start a process of "cultural change". However the organisation cannot ignore the gravity of the firm's conduct.

KPMG international cleared out its South African leadership last week and withdrew its findings and recommendations from the controversial Sars report into the intelligence unit.

The auditing firm has lost several clients after the firm released the findings of its internal investigation which revealed serious failings in the work it did for Gupta-linked companies and Sars.

BLSA’s CEO Bonang Mohale says the organisation took this bold step because what KPMG has done goes against its values.

“We believe that it demonstrates beyond a shadow of doubt that we were serious when we signed a contract with South Africa. Remember, we’ve just signed an anti-corruption oath called the Integrity Pledge.”