It doesn’t rain but pours for international audit firm KPMG and global consultancy McKinsey as the US Federation Bureau of Investigation (FBI) has opened an investigation into the role of the two in fraudulent activities involving firms owned by the Gupta family.
The US authorities believe that there was possible violation of the country’s Foreign Corrupt Practices Act.
A source told The Citizen that the FBI may further try to establish if the United States Securities and Exchange Commission (SEC) was not contravened as well during the transactions.
Reports abounded recently that both KPMG and McKinsey were captured by the Guptas.
KPMG audits at Eskom and elsewhere came under scrutiny after the firm could not detect graft that was taking place at the state-owned power utility, Eskom.
McKinsey struck a deal with Gupta-owned Trillian Capital Partners that resulted in Eskom paying least R266 million, an amount far above what Trillian was supposed to receive for the work it did in helping the power utility to facilitate tenders.