Progressive Professionals Forum (PPF) has urged the nation’s Minister of Finance Malusi Gigaba to allocate all work currently done by auditors KPMG for government departments to wholly black-owned small and medium sized auditing firms, with a preference for women-owned firms.
The PPF, through its president Mzwanele Manyi welcomed last week’s announcement by Gigaba that all government departments must review their work with KPMG, Fin24, reports. This followed the auditing firm’s recent withdrawal of the conclusions of its so-called ‘rogue unit’ report for the SA Revenue Service (SARS).
“The current debacle by KPMG with SARS indicates that other auditing firms may also be involved in unethical practises and their reports may lack the necessary and expected credibility,” said the PPF’s deputy secretary general Zinhle Cele.
It called for an independent inquiry into the work of KPMG for government and state-owned enterprises (SOEs) dating back to 1994. The PPF also wants government and SOEs to cease all work with KPMG until the completion of such an inquiry.
“PPF reiterates its call on all progressive professionals in the private and public institutions to exercise procurement spend to be biased towards the black owned small and media auditing firms,” said Cele.
The global auditors, KPMG came under fierce criticism in South Africa for its role in working on the accounts of the Guptas. Clients in South Africa are questing the firm’s integrity and professionalism after KPMG was found to have leaked details of its audit reports to non-authorised parties.
South African Revenue Service, SARS had earlier called for the investigation and prosecution of KPMG after the firm acknowledged “flaws” in a report that it compiled for SARS which implied that former finance minister Pravin Gordhan had helped set up a “rogue spy unit” when he was head of the service.
Clients and blue-chips who are reportedly looking for new consultants are Investec, Barclays, Sibanye, Old Mutual and many others not yet known. While Hulisani and Sasfin have since announced that they will be terminating their contract with KPMG while calling for fresh tenders for the job.