JOHANNESBURG - KPMG
cleared out its South African leadership on Friday after damning
findings of an internal investigation into work done for the
Guptas, businessmen friends of President Jacob Zuma accused of
improperly influencing government contracts.
KPMG's investigation did not identify any evidence of
illegal behaviour or corruption but it did find that work done
for Gupta family firms "fell considerably short of KPMG's
standards", the auditor said in a statement.
"This has been a painful period and the firm has fallen
short of the standards we set for ourselves, and that the public
rightly expects from us," new CEO Nhlamu Dlomu
said.
Also read: SA KPMG CEO resigns following Gupta scandals
"I want to apologise to the public, our people and clients
for the failings that have been identified by the
investigation." KPMG said it would donate the R40 million it earned in fees from Gupta-controlled firms to charity and
refund R23 million it earned after compiling the "rouge" report for the Sars.
South African chief executive Trevor Hoole, chairman Ahmed
Jaffer, chief operating officer Steven Louw and five senior
partners have all resigned. "I absolutely understand that ultimate responsibility lies
with me," Hoole said in a statement.
KPMG is also seeking to take disciplinary action to dismiss
Jacques Wessels, the lead partner on audits of Gupta-linked
firms, it said. Wessels did not answer a call to his mobile
phone seeking comment.
Also read: Barclays Africa Group ties with KPMG under review
Andrew Cranston, former CEO of KPMG in Russia, has been
appointed as interim chief operating officer.
KPMG is one of several global firms to be dragged into the
Gupta scandal.
Zuma and the Guptas deny any wrongdoing and say they are the
victims of a politically motivated witch-hunt.
The British arm of Bell Pottinger collapsed this week after
the London-based global public relations agency's clients
deserted it because of a backlash over a racially charged
political campaign it ran for the Guptas.
Global consultancy McKinsey is also being investigated by
South Africa's parliament over whether it knowingly let funds
from state power utility Eskom be diverted to a Gupta company as
a way of securing a $78 million contract to advise Eskom, the
state power utility.
McKinsey is carrying out its own investigation, but has
denied wrong-doing.