The regulatory body investigating KPMG’s role in the Gupta state capture allegations is now gunning for an auditor at the centre of the so-called rogue unit at the SA Revenue Service.
Yesterday the Independent Regulatory Board of Auditors (IRBA) told Independent Media that Johan van der Walt was served with a notice of disciplinary action against him on Friday.
IRBA chief executive officer Bernard Agulhas said they had informed Van der Walt that he would be subjected to an investigation for his alleged role in the saga.
“In our letter, we usually request the auditor to provide us with information which will be relevant to the investigation. In the current investigation, we will investigate the auditor’s conduct in delivering the professional service, inter alia, in terms of the IRBA Code of Professional Conduct,” Agulhas said in a written response.
The troubles for Van der Walt began when KPMG made a public announcement and disputed the existence of a “rogue unit” within Sars.
In his findings, Van der Walt had insinuated that former minister of finance Pravin Gordhan - while Sars commissioner - was aware of the existence of an intelligence unit within Sars which was in contravention of the principle of the rule of law.
Last month, both the local and international offices of KPMG retracted the findings and apologised to Gordhan, who has since sought legal advice after rejecting their apology.
In its apology, newly appointed KPMG chief executive Nhlamu Dlomu said the firm recognised and regretted the impact the issue had had.
Dlomu said KPMG would co-operate with IRBA to assist in its investigations.
Yesterday, KPMG spokesperson Nqubeko Sibeko said the auditing firm was not aware of the notice served on Van der Walt but indicated his organisation would participate in the probe against him.
“He (Van Der Walt) resigned earlier. So we are not aware about the notice served on him,” Sibeko said.
Van der Walt could not be reached for comment.
According to IRBA regulations, if Van der Walt is found guilty, he could receive a caution or reprimand, incur a fine of up to R200 000 per charge, be suspended from practice for a specified period, or he could be removed from the register, which would effectively terminate his career in the auditing profession.
Various financial institutions and lately Wits University have severed ties with KPMG after it lost credibility regarding the rogue unit issue.