The CEO of KPMG has confessed that the auditing firm should have resigned from the Gupta companies earlier than March 2016. This cynical admission is in stark contrast to KPMG’s ongoing association with the corrupted JCI, even though KPMG is conflicted and JCI has failed to publish its annual financial statements since 2011. KPMG should resign forthwith.
During October 2005, one month after Brett Kebble’s death, the Investec-constituted boards of JCI and Randgold & Exploration appointed KPMG (Investec’s auditors) as the auditors to both companies, as well as the forensic accountants to JCI. During March 2006, Randgold’s own independent forensic accountants incontrovertibly proved that Kebble/JCI had stolen the bulk of Randgold’s listed shares. The directors of Randgold withheld this report from Randgold shareholders for more than two years.
In May 2006, the CEO of JCI and a partner of KPMG representing JCI misrepresented the above fraud to the Scorpions. During June 2006, KPMG was appointed as the forensic investigators to the Scorpions — to investigate the crimes perpetrated by their own client!
In June 2006, Randgold formulated a claim against JCI which, if executed, would have bankrupted JCI and a section 417 inquiry would have ensued. Randgold thereafter prepared but never issued a summons against JCI.
In the words of the late Barry Sergeant, fearless opponent of fraud and immorality in business and government, the Scorpions investigation into the Kebble frauds had been captured, and the investigation into the biggest fraud in South African history died a silent death.
I recommend Sergeant’s excellent but hitherto unheralded article that appeared in the May 2016 issue of Noseweek headlined "Investec perfected the capture game long before the Guptas landed: Kebblegate set a precedent for institutional takeovers". The local regulatory organs continue to stand by and watch while the largest fraud in the history of South African business remains unprosecuted.
Johann BlerschLlandudno
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