The Independent Regulatory Board for Auditors (Irba) is to investigate the conduct of the KPMG auditor responsible for producing the now repudiated forensic report into the alleged rogue unit at the South African Revenue Service (SARS).
Irba CEO Bernard Agulhas confirmed in a letter to DA finance spokesman David Maynier that the regulatory board’s investigation into the conduct of KPMG in relation to the Gupta-linked Linkway Trading would be extended to include the conduct of the auditor who produced the forensic report into the rogue unit, which led to the aborted attempt to charge former finance minister Pravin Gordhan.
KPMG International investigated the report, found that it did not meet quality standards and withdrew it.
Irba would not normally investigate forensic probes but the rogue unit investigation was conducted by a registered auditor so it does have jurisdiction.
Maynier welcomed the decision to extend the scope of the investigation into KPMG SA. “We hope that, given the public interest in this matter, this investigation will be fast-tracked by Irba,” he said.
“If the auditor, who was responsible for the forensic investigation into the SARS ‘rogue unit’, is charged and 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, forever.
“Auditing firms such as KPMG SA, which allegedly not only turned a blind eye, but also supplied the corporate grease to lubricate the wheels of state capture, tax evasion and corruption, must be held to account in SA,” Maynier said.
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