Report on Saica members delayed
• Institute to publish findings of all cases once processes have been finalised
Making amends: KPMG SA chair Wiseman Nkuhlu has said the firm will contribute to reparations for present and former Sars employees who were purged by Tom Moyane. /
The final report of the Ntsebeza inquiry, which was established to investigate allegations of misconduct by members of the SA Institute of Chartered Accountants (Saica) who worked for KPMG, will only be made public once further investigations on implicated members in the report are finalised.
The final report of the Ntsebeza inquiry, established to investigate allegations of misconduct of SA Institute of Chartered Accountants (Saica) members who worked for KPMG, will not be made public.
The inquiry, which was chaired by advocate Dumisa Ntsebeza and held public hearings, handed its final report to Saica in December 2018.
Saica said it had since initiated further investigative and disciplinary processes against its members who were implicated in the report.
Saica is of the opinion that it would be prejudicial to release this information before the allegations against all implicated Saica members have been thoroughly investigated and finalised,” it said.
KPMG found itself embroiled in allegations of state capture involving the Gupta family and also came under fire for its role in the SA Revenue Service (Sars) report on the so-called rogue unit, especially after it withdrew its findings and conclusions, but not the entire report. It later retracted the entire report.
Last week, KPMG SA chair Wiseman Nkuhlu said the company would contribute to reparations for present and former Sars employees who were purged by former commissioner Tom Moyane after the infamous rogue unit” report.
Nkuhlu recently launched his memoir, Enabler or Victim? KPMG SA and State Capture, which he described as his humble contribution” to the debate about the country’s auditing profession.
The allegations against KPMG had left it in a precarious position as high-profile clients began to cut ties with it.
Nkuhlu joined the firm as chair in March 2018 after the allegations emerged.
On Tuesday, Saica said it had since cancelled the membership of former KPMG partner Jacques
Wessels, who was the lead audit partner on the Gupta’s nonlisted entities such as Linkway Trading, allegedly used to channel R30m of taxpayers’ money to fund the infamous 2013 Sun City Gupta wedding.
Wessels faced an Independent Regulatory Board for Auditors (Irba) disciplinary committee where he admitted to being negligent during the audit of Linkway Trading, passing off costs for the family’s lavish Sun City wedding event as a business expense. He admitted to being negligent during the audit of the Gupta company, but denied he had been dishonest or had helped the family evade tax.
The committee found him guilty in 2018 of all six charges Irba levelled against him.
Saica said after the Irba finding that the institute’s disciplinary committee convened to determine the appropriate sanction against Wessels as a registered chartered accountant and decided to cancel Wessel’s membership, which meant he was no longer a chartered accountant. Only members of Saica are entitled to use the designation.
Saica said the professional conduct committee had finalised two other cases against members of the KPMG audit team, but the members exercised their right to have the matter referred to the disciplinary committee for hearing.
Two cases were continuing before the professional conduct committee and two cases were with the Irba for finalisation.
Saica said it would communicate the findings once they were finalised.
THE ALLEGATIONS AGAINST KPMG HAD LEFT IT IN A PRECARIOUS POSITION AS CLIENTS BEGAN TO CUT TIES WITH IT