CAPE TOWN - 'It's a tragedy that KPMG allowed itself to be used', Bonang Mohale, the CEO of Business Leadership South Africa (BLSA), said on Thursday.
Mohale believes that KPMG was used in the internal battles within the ANC.
He reported that the auditing firm let themselves, South Africa and the auditing profession down as a whole, according to a Fin24 report.
This comes after BLSA suspended the membership of KPMG SA, pending the outcome of an investigation into the firm’s involvement in conduct related to state capture in South Africa.
Mohale added that apparently KPMG victimised individuals and damaged the reputation of business.
"This happened at a time when South Africa’s financial services are heralded, celebrated and highlighted as absolutely the best in the world – where the number one, two and three spots in banking belonged to South African companies".
Mohale added that KPMG should have raised alarm bells when it received a R23m payment to produce a report for the SARS.
Similarly, Parliament has become the latest institution to cut ties with KPMG, reported by Business Report.
Parliament announced on Wednesday that its medical aid scheme, Parmed, would cancel its contract with KPMG.
According to Deputy Speaker Lechesa Tsenoli, this decision was made based on risk associated with the firm.
The institution said that they will also review the other contracts with the auditing firm.
“With regard to another contract KPMG has with Parliament, which is aimed at reviewing the effectiveness of the Parliamentary Service, both parties are in discussion around the immediate termination of the contract", said Parliament’s spokesperson Moloto Mothapo.
In addition, KPMG faces a review of their work by Minister of Finance, Malusi Gigaba as well as the Democratic Alliance.
- BUSINESS REPORT