South Africa’s auditing regulator refers KPMG to disciplinary hearing

PUBLISHED: Tue, 27 Feb 2018 11:26:26 GMT

South Africa’s Independent Regulatory Board for Auditors (IRBA) has referred KPMG to a disciplinary hearing following an investigation of its work for Linkway Trading, a project management firm owned by friends of former President Jacob Zuma.

Linkway Trading was a project management company in the Gupta-owned Oakbay Group. The Gupta brothers have been accused of using their links with Zuma to get lucrative tenders and influence cabinet appointment.

The Guptas and Zuma have denied any wrongdoing.

KPMG has previously refuted allegations that it was involved in, or condoned, any alleged money laundering activities linked to Linkway Trading.

“The disciplinary advisory committee resolved that the registered auditor must be referred to a disciplinary hearing,” said Bernard Agulhas, IRBA’s chief executive, in response to questions from Reuters.

He said hearing preparations were underway and that possible dates would be set down in due course.

Agulhas said in terms of South Africa’s Auditing Professions Act, KPMG could face sanctions ranging from a light caution or reprimand to the severest punishment, being struck from the register of auditors.

KPMG is one of several high-profile international companies facing questions about its work for the Indian-born Gupta brothers.

A number of companies, including the African arm of German insurer Munich Re MUVGn.DE and local ones such as Sasfin SFNJ.J and Hulisani HULJ.J, said last year they would drop KPMG as their auditor.

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