JOHANNESBURG - The board of Business Leadership SA (BLSA) has suspended the membership of audit firm KPMG in the wake of controversy surrounding the company's business.
BLSA said on Friday that the decision will stand pending an investigation into the KPMG's involvement in conduct related to state capture allegations.
KPMG has been thrust into the spotlight over the past couple of weeks following revelations in the GuptaLeaks, that linked the firm to alleged corrupt activity by the Gupta family.
The firm is accused of helping the controversial family to launder government money to help finance a family wedding.
A week ago, the firm announced that it was withdrawing its findings and recommendations of its report into an investigation into a SARS "spy unit".
It also announced a big shack-up to its leadership with a number of executives resigning.
The firm said it also would pay back millions of rands that it charged SARS for in its investigation.
BLSA said it recognises the steps outlined by KPMG, stating what it would do to save its public image.
"BLSA recognises the considerable steps announced by KPMG to change its leadership and commence a process of cultural change. It cannot look past the gravity of their conduct which is completely inconsistent with the values of BLSA, contained in the heritage pledge."
The organisation's chief executive, Bonang Mohale said his organisation was deeply concerned about the unethical conduct that KPMG undertook.
"The firm became party to the project of state capture which has harmed our country, victimised certain individuals and damaged the reputation of business," said Mohale.
- POLITICS HUB
At least two of KPMG's clients have also announced that they would be firing the firm.