Gordhan, Jonas want KPMG to come clean on its ‘role in state capture’

The former finance minister says the embattled firm should be more 'open and frank' with South Africans.

Ex-Deputy Finance Minister, Mcebisi Jonas and Ex-Finance Minister Pravin Gordhan during a press conference held inside the National Treasury, Mcebisi and Pravin were fired the night before during a Cabinet reshuffle by President Jacob Zuma, 31 March 2017, Pretoria. Picture: Jacques Nelles

Former finance minister Pravin Gordhan and his former deputy, Mcebisi Jonas met with the KPMG International delegation on Thursday.

The meeting requested by KPMG International chairperson, John Veihmeyer comes after the auditing firm sacked nine senior executives in South Africa following scandals which involved the Sars “rogue unit” report and the Gupta family.

In a statement released by Gordhan on Thursday, he said in the meeting they indicated that “while we have agreed to meet KPMG, we reserve our legal rights.”

“We shared our strong feelings and disapproval of the manner in which KPMG SA has been involved in the validation of state capture and corruption in respect of both the South African Revenue Service (Sars) and companies of the Gupta family. KPMG has a moral duty to account for their conduct to the South African public and they have to be frank and transparent in their disclosures if they wish to restore their own reputation.

“We insisted on full and proper disclosure of the role of various parties in the state capture project and the manner in which KPMG staff seem to have colluded in these processes – including the complete disregard shown by the management of KPMG.”

He said further steps need to be taken by the firm to be more “open and frank” with South Africans.

“This will determine whether KPMG can earn the respect and confidence of both corporates and the audit profession on the one hand, and the South African public on the other.”