KPMG Fires Executives Over Gupta Scandal

September 18, 2017
KPMG Fires Executives Over Gupta Scandal

By Modupe Gbadeyanka

The management team of KPMG in South Africa has been removed by following their involvement in the Gupta scandal.

Members of the management team led by the Chief Executive, Chairman and Chief Operating Officer, Trevor Hoole, Ahmed Jaffer, and Steven Louw respectively have been showed the way out alongside five other senior partners.

Though the foremost accountancy firm emphasised that no evidence of corruption or illegal action by staff was found, the work done for the Guptas, who have close links to President Jacob Zuma, “fell short of our standards.”

KPMG said it would donate the $3 million it earned in fees from Gupta-controlled firms to charity and refund $1.7 million it earned compiling a controversial report for the South African tax agency.

The Guptas have been accused in the past of wielding influence in South African politics under President Jacob Zuma’s administration.

But both President Zuma and the Guptas have denied wrongdoing, crying out loud that they were being politically witch-hunted.

Brothers Ajay, Atul and Rajesh Gupta have interests in computer, mining, media, travel, energy and technology and employ around 10,000 people through their company Sahara Group.

The new chief executive of KPMG in South African, Nhlamu Dlomu, described this period as “painful,” noting that her firm has “fallen short of the standards we set for ourselves and that the public rightly expects from us.”

“I want to apologise to the public, our people and clients for the failings that have been identified by the investigation,” she said.

KPMG is the third major firm involved in the controversy from dealings with the Gupta family’s group of businesses, after London-based public relations firm Bell Pottinger fell into administration this week. Bell Pottinger’s downfall followed a damning report into its work for the Guptas which led to other companies deserting it.

Pressure is also mounting on US consultancy McKinsey over its dealings with the Gupta family businesses.

Modupe Gbadeyanka

Modupe Gbadeyanka is a fast-rising journalist with Business Post Nigeria. Her passion for journalism is amazing. She is willing to learn more with a view to becoming one of the best pen-pushers in Nigeria. Her role models are the duo of CNN's Richard Quest and Christiane Amanpour.

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