10 August COMMENT: EDINBURGH — South African entrepreneur Magda Wierzycka of Sygnia cut a lonely figure when she took a stand against corporate corruption by last month firing KPMG as her JSE-listed firm’s auditors after its involvement in Gupta state capture were revealed. No other business leaders followed suit, yet there has been a national outcry in South Africa as President Jacob Zuma remains in power. The #GuptaLeaks emails have exposed KPMG for its role as the auditors of the Guptas’ Linkway Trading – from which state funds earmarked for the Gupta-linked Estina dairy project in the Free State were diverted to cover the expense of the controversial Gupta family wedding at Sun City. KPMG also allowed Linkway to account for the wedding as a business expense, so no tax was paid on the Free State government funding. KPMG employees were among the guests at the Sun City wedding. But, other South African business leaders have turned a blind eye to the role of KPMG in aiding and abetting the Gupta family, which effectively controls the ruling ANC through President Zuma. BizNews publishes the list of companies still doing business with KPMG – even though the Big Four consultancy appears unrepentant about its relationship with the Gupta family. – Jackie Cameron
70 companies turning a blind eye to Gupta state capture
Source: Profile Group. This list was accurate as at last official Audited Annual Financial Statement of listed entity.
- British American Tobacco plc
- BHP Billiton Plc
- Standard Bank Group Ltd.
- Old Mutual plc
- South32 Ltd.
- Barclays Africa Group Ltd.
- Nedbank Group Ltd.
- Bid Corporation Ltd.
- Growthpoint Properties Ltd.
- Redefine Properties Ltd.
- Sappi Ltd.
- Gold Fields Ltd.
- Sibanye Gold Ltd.
- AVI Ltd. (announced they would dump KPMG 6 October 2017)
- The Foschini Group Ltd. (fired KPMG on the 9th October 2017)
- Investec Ltd.
- Hyprop Investments Ltd.
- African Rainbow Minerals Ltd. (fired KPMG on the 23rd October 2017)
- Super Group Ltd.
- AECI Ltd.
- MAS Real Estate Inc.
- Redefine International P.L.C.
- JSE Ltd. (JSE CEO Nicky Newton-King confirmed that the firm is now audited by EY as part of the audit rotation process.)
- Sirius Real Estate Ltd.
- African Oxygen Ltd.
- Trencor Ltd.
- Peregrine Holdings Ltd.
- City Lodge Hotels Ltd.
- Investec Australia Property Fund
- Allied Electronics Corporation Ltd.
- Lonmin plc
- Choppies Enterprises Ltd.
- Absa Bank Ltd.
- Tharisa plc
- Merafe Resources Ltd.
- Nedbank Ltd.
- Spur Corporation Ltd.
- Holdsport Ltd.
- Texton Property Fund Ltd.
- Finbond Group Ltd.
- Stor-Age Property REIT Ltd.
- Phumelela Gaming and Leisure Ltd.
- DRDGOLD Ltd.
- Sasfin Holdings Ltd. (The group announced on 19 September 2017 that they had fired KPMG)
- Astoria Investment Ltd.
- Investec Bank Ltd.
- Wesizwe Platinum Ltd.
- York Timber Holdings Ltd.
- Deneb Investments Ltd.
- ELB Group Ltd.
- Hulisani Ltd. (Also reported to have fired KPMG on 19 September 2019)
- Vunani Ltd.
- Gaia Infrastructure Capital Ltd.
- Transcend Residential Property Fund Ltd.
- PBT Group Ltd.
- Efficient Group Ltd.
- Interwaste Holdings Ltd. (The group announced they fired KPMG on 5 October 2017)
- Atlatsa Resources Corporation
- Alaris Holdings Ltd.
- ZCI Ltd.
- Randgold & Exploration Co Ltd.
- Indequity Group Ltd.
- Esor Ltd.
- Chemical Specialities Ltd.
- Verimark Holdings Ltd.
- Rex Trueform Clothing Company Ltd.
- Brikor Ltd.
- Nictus Ltd.
- Alert Steel Holdings Ltd.
- Rockwell Diamonds Inc.
- African and Overseas Enterprises Ltd.
Keep up with the role of KPMG in state capture here:
Magda Wierzycka is the first leader in the business sector to take a firm stand against the big corporates who have benefited from state capture. Wierzycka said in a recent interview on television that she was prepared to be outspoken, even though this is not the done thing in the corporate sector, as she is fully committed to seeing a better future for South Africa. Meanwhile, KPMG leaders appear to have their proverbial heads in the sand, opting for a “silence is golden” approach to managing their reputation in this crisis
Magda Wierzycka is one of South Africa’s most successful female entrepreneurs, and arguably its most influential in the financial services sector. Wierzycka has also become one of the most outspoken South African CEOs on the subject of corruption and the abuse of the disadvantaged. Earlier this year, her criticism of asset management rival Allan Gray ultimately led to a change in the boardroom of Net1 – a Nasdaq-listed companyaccused of riding on the backs of welfare recipients. Now Wierzycka has taken action against Big Four accounting firm KPMG.
While South Africans react with outrage over the vast and growing body of evidence that multinationals like KPMG and McKinsey have been complicit in the Gupta state capture campaign, the leaders of these companies are sitting pretty it seems. For example, neither the police nor the Financial Intelligence Centreappear to be investigating damning allegations that KPMG was aware of tax evasion and moneylaundering by the Gupta family. What’s more, KPMG CEO Trevor Hoole and team don’t seem to think they owe South African taxpayers a detailed explanation for the involvement of KPMG in Gupta affairs.
Moses Kgosana was about to take the chair at Alexander Forbes Group Holdings when his name emerged in secret emails leaked from the heart of the Gupta family empire. He has been linked to an accounting manoeuvre that facilitated state payment for an extravagant private event. Read more.
Auditing firm KPMG has been thrust into the limelight for its relationship with the Gupta family – Indian immigrants at the centre of a state capture scandal that has engulfed South Africa. KPMG helped the Gupta family divert taxpayers’ funds to pay for an extravagant family wedding at Sun City and went one step further in ripping off taxpayers by helping the family to avoid paying tax on the funds. Read more.
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