The Independent Regulatory Board for Auditors (IRBA) has told Parliament that KPMG has not fully cooperated with its investigation.
The regulator was responding to a question from the Democratic Alliance (DA) about whether it had received all of the documents it requested from the auditing firm for purposes of its probe.
Although KPMG cut ties with Gupta-owned businesses last year, the firm’s 2014 audit of Linkway Trading is now under the microscope after leaked emails exposed a cosy relationship between KPMG’s former CEO and the influential family.
The regulator’s Chief Executive Bernard Agulhas told Parliament’s Standing Committee on Finance that KPMG was initially not forthcoming with information, but the situation has since improved, barring some outstanding documents.
“After we have met with leadership, the local leadership and the international leadership, they have given us the commitment that they will cooperate.”
According to DA Member of Parliament David Maynier, Agulhas’ explanation suggested KPMG was not fully cooperating.
“Would you agree KPMG South Africa has not fully cooperated, yes or no?”
Pressed by Maynier for a short answer, Agulhas responded and said: “In terms of the way that honourable Maynier described the question and posed the question, the answer is no.”
KPMG audited Linkway Trading, a company allegedly involved in the diversion of public funds from the Free State government to pay for a lavish Gupta family wedding.
The auditors that attended the wedding are also under investigation.
Meanwhile, chairperson of Parliament's Standing Committee on Finance says the committee is not equipped to carry out a full-scale investigation into intelligence and auditing matters in the KPMG scandal.
Carrim says because the report involves both intelligence and auditing matters, the intelligence committee would have to be involved.
