KPMG due in parliament

Representatives of auditing firm KPMG are due to appear before parliament’s standing committee on public accounts (Scopa) on Thursday.

“KPMG appearing before Scopa this Thursday‚ yes I can confirm‚” Scopa chairperson Themba Godi said on Wednesday in a message posted on Twitter.

KPMG has come under fire in recent weeks as its involvement with the controversial Gupta business family made headlines.

The South African division of the global company was recently forced to withdraw the findings of a controversial report that had implicated former finance minister Pravin Gordhan and senior officials of the SA Revenue Service (SARS).

The Gupta scandal has triggered the resignation of its top management team and prompted several clients to drop the firm as their auditor.

The Independent Regulatory Board for Auditors (IRBA) met with KPMG executives last week as part of its investigation into the auditing firm’s conduct in relation to Gupta-owned companies.

The investigation concerns the role of KPMG in the auditing of Gupta-owned company Linkway Trading and the diversion of public funds invested into a Free State dairy farm to offshore bank accounts in the United Arab Emirates.

The funds were allegedly used to fund the Gupta wedding in 2014. The IRBA is also investigating the presence of KPMG executives at the wedding.

Leaked Gupta-related e-mails indicate that KPMG was aware that Gupta family companies were categorising the wedding costs as business expenses‚ which can be deducted for tax purposes.

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