This is typical colonial arrogance, KPMG has not done enough, says Gordhan

Former finance minister Pravin Gordhan has welcomed the withdrawal of the “Sars rogue unit” report by the embattled auditing firm KPMG but has attacked the company for its “colonial arrogance”.

Earlier on Friday, KPMG confirmed that nine senior officials have stepped down following the firm’s involvement with two corruption scandals affiliated to the Guptas and Sars. The Sars rogue unit allegedly spied on senior government officials and supposedly set up a brothel and Gordhan was questioned about the unit, which at the time fell under his department as finance minister.

“To be clear, the evidence in the documentation provided to KPMG South Africa does not support the interpretation that Mr Gordhan knew – or ought to have known – of the ‘rogue’ nature of this unit,” said KPMG.

In a statement released on Friday, the former finance minister said KPMG international did not implement its own criticism of KPMG South Africa – that those affected by their alleged findings should be given a hearing.

“Did they talk or even attempt to contact the senior officials who were victimised at SARS? Why has there been no direct contact with myself, to convey a sincere apology? This is typical colonial arrogance and KPMG has not done enough.

“One would have expected KPMG to have the courage to admit, in the face of their own investigation, that the establishment of this unit was in fact legal. This option still remains open to them.”

Gordhan also noted the firm’s “regret” but said he remained doubtful on whether the “regret” was proportional to the damage the company had done.

“I will be seeking legal advice in this regard. Whilst there have been personal consequences the real issue that confronts us is the significant damage to our hard-won democracy, to our state institutions and ultimately to the South African people for whom we seek a better life.”

Gordhan said he was surprised by the “scant regard” shown for the firm’s role in the “capture” of the revenue service and the huge damage it had done to the reputations of a professional group of public servants.

“It is unfortunate that a company with the stature of KPMG, with a responsibility and obligation to be objective, has been found to be wanting. This is exacerbated by their collaboration with the Gupta family.

“This may be a small step in the right direction to hold corporates accountable for their wrongdoings as well as the beginning of what reparations will be to make things right. KPMG has a lot more to do to convince South Africans that they will undergo a genuine change in culture and ethics and are prepared to take total ownership for the damage they have caused or contributed to.”

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