KPMG Under Fire in S. Africa for Work Done for Gupta Family
- Finance minister, Reserve Bank Governor criticize audit firm
- National Assembly’s medical-insurance plan drops company
The offices for the accounting firm KPMG LLP stand in Los Angeles, California, U.S., on Tuesday, April 9, 2013. KPMG LLP resigned as the auditor for two companies and fired the partner overseeing its Los Angeles audit practice amid allegations the person leaked confidential client information to a third party who used it to make stock trades.
Photographer: Patrick T. Fallon/BloombergKPMG LLP is coming under increasing pressure in South Africa over work done for the wealthy Gupta family, with Finance Minister Malusi Gigaba calling on all government entities to review work with the auditing firm.
An influential business lobby group suspended the company’s membership and the governor of the central bank said it was concerned that KPMG’s internal standard controls aren’t of an acceptable quality. Former Finance Minister Pravin Gordhan weighed in, telling the company’s global chairman, John Veihmeyer, that he strongly disapproved of the firm’s work relating to South Africa’s tax authority.