Editing KPMG (section)

===2017 South African corruption scandal===
{{See also|Gupta family#Uranium interests, Nhlanhla Nene, Pravin Gordhan and KPMG}}
In 2017, KPMG was embroiled in related scandals involving the [[Gupta family]].<ref>{{Cite news|url=https://www.biznews.com/global-investing/2017/07/11/mckinsey-guptaleaks-south-africans/|title=South Africans urge US law-enforcers to bring Gupta and friends down with McKinsey – BizNews.com|date=11 July 2017|work=BizNews.com|access-date=12 July 2017|archive-date=27 April 2019|archive-url=https://web.archive.org/web/20190427140010/https://www.biznews.com/global-investing/2017/07/11/mckinsey-guptaleaks-south-africans|url-status=dead}}</ref> KPMG, whose history in South Africa dated back to 1895, and which had been part of the international organization since its founding in 1979,<ref>{{cite web|url=https://home.kpmg.com/za/en/home/about/history.html|title=History|publisher=KPMG South Africa|access-date=29 September 2017|archive-url=https://web.archive.org/web/20170929215434/https://home.kpmg.com/za/en/home/about/history.html|archive-date=29 September 2017|url-status=dead}}</ref> faced calls for closure, and an uncertain future, as a consequence of the damage done to the South African economy as a result of its activities.<ref>{{cite web|url=https://www.moneyweb.co.za/moneyweb-radio/why-i-stepped-away-from-munich-re-of-africa-over-kpmg/|title=KPMG will die a natural death – Abedian|date=15 September 2017|publisher=Moneyweb|access-date=29 September 2017|archive-url=https://web.archive.org/web/20170930035715/https://www.moneyweb.co.za/moneyweb-radio/why-i-stepped-away-from-munich-re-of-africa-over-kpmg/|archive-date=30 September 2017|url-status=dead}}</ref><ref>{{cite news|url=https://www.reuters.com/article/us-kpmg-safrica-exclusive/exclusive-south-africas-central-bank-tells-lenders-that-kpmg-is-too-big-to-fail-idUSKCN1C416G|title=Exclusive: South Africa's central bank tells lenders that KPMG is 'too big to fail'|work=Reuters|access-date=29 September 2017}}</ref>

KPMG had been working with a Gupta family company in the mining sector, Oakbay Resources and Energy, for 15 years prior to the revelations of corruption and collusion in 2016, at which point KPMG resigned. The full impact and financial profit that KPMG received is yet to be determined;<ref name="timesKPMG">{{cite web |url=http://www.timeslive.co.za/sundaytimes/businesstimes/2016/04/04/KPMG-Sasfin-cut-links-with-Gupta-firm |title=KPMG, Sasfin cut links with Gupta firm |publisher=[[Sunday Times (South Africa)|Sunday Times]] |agency=Reuters |date=4 April 2016 |access-date=7 April 2016 |author1=Cropley, Ed |author2=Motsoeneng, Tisetso}}</ref> however, at least one large company has terminated its services with KPMG due to its relationship with Oakbay.<ref name="mgKPMG1">{{cite news |url=https://mg.co.za/article/2017-07-28-00-kpmg-put-through-the-wringer |title=JSE-listed Sygnia fires KPMG over 'Gupta links' |newspaper=[[Mail & Guardian]] |date=28 July 2017 |access-date=30 August 2017 |author=Steyn, Lisa}}</ref>

In July 2017, after controversial documents were leaked by the amaBhungane Centre for Investigative Journalism, former chief executive of KPMG South Africa and the former partner that was responsible for audits related to the Gupta family, Moses Kgosana, withdrew from becoming the chairman of [[Alexander Forbes Group Holdings|Alexander Forbes]], a financial services firm.<ref>{{cite news|last1=Wessels|first1=Vernon|title=Ex-KPMG South Africa Boss Quits New Role to Face Gupta Claims|url=https://www.bloomberg.com/news/articles/2017-07-03/ex-kpmg-south-africa-boss-quits-new-role-to-face-gupta-claims|access-date=22 September 2017|agency=Bloomberg|date=3 July 2017}}</ref><ref>{{cite web|title=Meet unrepentant Gupta tax dodge 'lapdog' Moses Kgosana, KPMG heavyweight (5 July 2017)|url=http://www.biznews.com/guptaleaks/2017/07/05/moses-kgosana-gupta-kpmg/|website=Biznews.com|date=5 July 2017|access-date=22 September 2017|archive-date=23 September 2017|archive-url=https://web.archive.org/web/20170923002644/http://www.biznews.com/guptaleaks/2017/07/05/moses-kgosana-gupta-kpmg/|url-status=dead}}</ref>

In 2015, KPMG issued a controversial report that implicated former Finance Minister [[Pravin Gordhan]] in the creation of an illegal intelligence gathering unit of the [[South African Revenue Service]] (SARS). This report was seen by elements of the media to be part of a wider Gupta-linked [[state capture]] conspiracy, with the aim of forcing Gordhan out of his post.<ref>{{cite web|url=https://www.dailymaverick.co.za/article/2017-07-04-after-the-gupta-wedding-and-the-sars-rogue-unit-report-fiascos-what-future-for-kpmg-in-south-africa/#.WcIo2oyCxPY |title=After the Gupta wedding and the SARS 'Rogue Unit' report fiascos: What future for KPMG in South Africa? |publisher=Daily Maverick |date=4 July 2017 |access-date=21 September 2017}}</ref> The report was withdrawn by KPMG in September 2017,<ref>{{cite web |url=http://www.huffingtonpost.co.za/2017/09/15/kpmg-shocker-audit-firm-disavows-sars-rogue-unit-report-eight-senior-staff-resign_a_23210381/ |title=KPMG Shocker: Audit Firm Disavows Sars 'Rogue Unit' Report, Eight Senior Staff Resign |publisher=Huffingtonpost.co.za |date=15 September 2017 |access-date=21 September 2017 |archive-date=20 September 2017 |archive-url=https://web.archive.org/web/20170920142942/http://www.huffingtonpost.co.za/2017/09/15/kpmg-shocker-audit-firm-disavows-sars-rogue-unit-report-eight-senior-staff-resign_a_23210381/ |url-status=dead }}</ref> earning the ire of the Commissioner of SARS, Tom Moyane.<ref>{{cite web|url=https://www.timeslive.co.za/news/south-africa/2017-09-18-all-out-wars-as-sars-blames-kpmg-for-reputational-damage/|title=All out wars as SARS blames KPMG for reputational damage|date=18 September 2017|publisher=Times Live|access-date=21 September 2017}}</ref>

After an internal investigation that found work done for the Gupta family fell "considerably short" of the firm's standards and amid rising political and public backlash, KPMG's senior leadership in South Africa, including its chairman Ahmed Jaffer, CEO Trevor Hoole, COO Steven Louw, and five partners, resigned in September 2017.<ref>{{cite news|title=KPMG SA leadership axed in wake of Gupta revelations|url=http://www.enca.com/south-africa/kpmg-sa-leadership-axed-in-wake-of-gupta-revelations|access-date=15 September 2017|publisher=ENCA|date=15 September 2017|archive-date=22 January 2018|archive-url=https://web.archive.org/web/20180122203848/http://www.enca.com/south-africa/kpmg-sa-leadership-axed-in-wake-of-gupta-revelations|url-status=dead}}</ref><ref>{{cite news|last1=Brock|first1=Joe|title=KPMG South Africa senior leaders resign over Gupta scandal|url=https://www.independent.co.uk/news/business/news/kpmg-south-africa-gupta-scandal-senior-leaders-resign-auditor-government-contracts-trevor-hoole-a7948286.html|access-date=22 September 2017|work=The Independent|date=15 September 2017}}</ref>

Save South Africa, a civil-society group, accused KPMG and UK PR firm [[Bell Pottinger]] of playing a "central role in facilitating state capture".<ref name="Cotterill-15Sep2017">{{cite news|last1=Cotterill|first1=Joseph|title=KPMG South Africa chiefs resign over Gupta scandal|url=https://www.ft.com/content/ce8ddb84-9a01-11e7-a652-cde3f882dd7b |archive-url=https://ghostarchive.org/archive/20221210/https://www.ft.com/content/ce8ddb84-9a01-11e7-a652-cde3f882dd7b |archive-date=10 December 2022 |url-status=live|access-date=15 September 2017|work=Financial Times|date=15 September 2017|url-access=subscription}}</ref> Numerous South African companies either fired KPMG in the immediate aftermath of the scandal, or were reconsidering their relationships with the firm<ref>{{cite web |author=Hilton Tarrant / 21 September 2017 |url=https://www.moneyweb.co.za/news/companies-and-deals/hulisani-drops-kpmg-due-to-reputational-risk/ |title=Hulisani drops KPMG due to reputational risk |publisher=Moneyweb |date=13 October 2015 |access-date=21 September 2017 |archive-url=https://web.archive.org/web/20170920053706/https://www.moneyweb.co.za/news/companies-and-deals/hulisani-drops-kpmg-due-to-reputational-risk/ |archive-date=20 September 2017 |url-status=dead }}</ref> with the international chairman of KPMG, John Veihmeyer, apologising for the conduct of the South African arm<ref>{{cite news|url=https://uk.reuters.com/article/uk-kpmg-safrica-chairman/kpmg-international-chairman-apologises-for-south-africa-failings-idUKKCN1BU24O?il=0|archive-url=https://web.archive.org/web/20170920142000/https://uk.reuters.com/article/uk-kpmg-safrica-chairman/kpmg-international-chairman-apologises-for-south-africa-failings-idUKKCN1BU24O?il=0|url-status=dead|archive-date=20 September 2017|title=KPMG international chairman apologises for South Africa failings|date=19 September 2017|work=Reuters|access-date=21 September 2017}}</ref> and the firm pledged to donate fees earned from Gupta businesses, as well as the withdrawn SARS report, to anti-corruption activities.<ref>{{cite web |url=https://www.iol.co.za/news/south-africa/gordhan-jonas-meet-with-kpmg-over-state-capture-11311171 |title=Gordhan, Jonas meet with KPMG over state=== capture &#124; IOL News |publisher=Iol.co.za |date=15 September 2017 |access-date=21 September 2017 |archive-url=https://web.archive.org/web/20170921222157/https://www.iol.co.za/news/south-africa/gordhan-jonas-meet-with-kpmg-over-state-capture-11311171 |archive-date=21 September 2017 |url-status=dead }}</ref>