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What does the future hold for KPMG in South Africa?
Some of my friends are taking bets that KPMG in South Africa will be out of business by the end of this year. That is probably a fairly wild prediction, but at the moment they have executive staff resigning and are losing clients. Obviously, all of this is about the work they did for the Gupta’s and we have already seen what happened to the UK public relations firm, Bell Pottinger. Meanwhile, Pravin Gordhan has warned that more, with regard to KPMG is going to come out. The report by KPMG led to the dismissal of the former Finance Minister, and as you all know, they now admit that they “made mistakes” and that its executives managed to ignore “red flags” that came up with regard to the work that they did for the Gupta’s. KPMG so far has not released their own internal report because they say that the report has sensitive client information about the Gupta’s.
We will have to wait and see if anything else does come out and whether any other companies drop KPMG but this is certainly highly embarrassing for them.
Posted by Michael de Broglio on Tuesday 26-Sep-17
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Comments
Lucretia said:
on Wednesday 04-Oct-17 08:44 AM
I cannot believe how one family can destroy so many long standing businesses. I have lost all respect for KPMG and now start wondering how much of all the other things they audit, i.e the lotto, etc has not gone on to be won by people in the circle of "guptamania". KPMG gets a definite thumbs down from me.
Nicolle said:
on Monday 02-Oct-17 02:08 PM
"Gosh-Darn-It" - said every new-to-accounting-school student everywhere. - Well, there potentially goes your dreams of becoming an Accountant for this big corporate.
Tamaryn said:
on Monday 02-Oct-17 10:31 AM
I don't see how KPMG South Africa is going to bounce back from this. It goes to the core of everything they should stand for and I think there is still a lot more to come out! They may well go under, similar to Bell Pottinger but perhaps just not as quickly. The Gupta's leave nothing but a trail of devastation in their wake and they feed on corrupt executives and politicians. Let this be a big wake-up call for all those under the influence of the Gupta's and their greed.
Liesl said:
on Monday 02-Oct-17 10:16 AM
I'm was very disappointed when I heard about KPMG, I drive past their offices everyday to and from work and always thought "what an esteemed company". Well that was another lesson learnt for me and then wondered why I was even surprised to find out that the Guptas was connected there as well.
Cornelie said:
on Monday 02-Oct-17 09:23 AM
Sometimes it is not always best to keep quiet about what you are doing behind the scenes and so sad that a lot of people will be without a job because of their mistakes.
Liz said:
on Monday 02-Oct-17 09:09 AM
KPMG made a massive mistake, and what they have proposed in order to repent for this is far from enough- paying back a few millions and firing a few big names will not restore faith in the company. I do not believe KPMG should be closed down completely, however, I do believe they should take more responsibility for what they have done and implement measures to prevent something like this reoccurring.
Prishani said:
on Monday 02-Oct-17 08:54 AM
The situation with KPMG is a scary reality that our country will have to face sooner or later, it is sad to see this happen to a company which had a really good reputation in our country! It must be a horrific situation to deal with and hope they bounce back from this.
Ashleigh said:
on Monday 02-Oct-17 08:38 AM
Unfortunately you have to be careful who you deal with when it comes to business. Who you deal with can either make or break you.
Zindy said:
on Monday 02-Oct-17 08:12 AM
If they do close,Its sad as there are plenty staff that will be jobless. I think that a cover up was in operation for a long time and KPMG tried to remove the people causing all the trouble before any more damage was done and things reveled.
Nicky said:
on Friday 29-Sep-17 04:54 PM
KPMG's future isn't looking too bright...
It amazes me that there are investigations and consequences against the companies associating with the Guptas (rightfully so)-but I haven't heard about any action against the Guptas-who is at the centre of all of this!
Moyane's reaction to KPMG's confession also amazes me- it sounds as if he's angry that the confession was made, and again this anger was directed at KPMG and not the Guptas.
Sarah said:
on Friday 29-Sep-17 04:16 PM
I really hope KPMG does not close down, our country already has a high unemployment rate . It will be sad to see those people lose their jobs
Alexis said:
on Friday 29-Sep-17 08:42 AM
If you want to do business with unsavory people, it is expected that there is the chance of losing out on business. No one wants to deal with dodge, I certainly would not like to. They should have reconsidered....and now....!
Angelique P said:
on Friday 29-Sep-17 07:36 AM
I really hope that KPMG does not close. There are so many people without jobs. South Africa can't afford another big company to close down.
Melissa van Tellingen said:
on Thursday 28-Sep-17 08:21 AM
Anything that has the Gupta's linked to it is bound to go down. They are losing their big clients and should have known that this was going to happen. I heard on the radio that all their files will be audited to see if there was any red flags. I'd hate to be them. I don't see a bright future for KPMG as things stand now.
Michelle said:
on Thursday 28-Sep-17 07:41 AM
Once there are predictions that a company will close and the staff are resigning etc. it does not sound good for KPMG to last.
Joyce said:
on Wednesday 27-Sep-17 05:01 PM
It sounds like associates to do with Gpta's, there is likely to be some scandals behind.
Their admission that they made mistakes, I think that means there was something unacceptable done and says what the future holds for KPMG in South Africa if there was actual an unacceptable thing that was done
patrick said:
on Wednesday 27-Sep-17 04:59 PM
anything that has a Gupta touch is going to a deem view. watch the space, KPMG is going down. Their report played a huge role in state capture. they must go down.
Zanell said:
on Wednesday 27-Sep-17 09:33 AM
I think it would be hectic to see KPMG close down at the end of the year. Corruption is everywhere it just depends on who gets busted.
Daniella said:
on Wednesday 27-Sep-17 09:30 AM
Its hard for people to trust a business that associates themselves with the Guptas, a big company like KPMG has dug themselves into a massive, very publicized hole. It would be very hard for them to get back up from this.
Angelique Jurgens said:
on Wednesday 27-Sep-17 08:52 AM
That's what happens when you are associated with the Guptas. Funny thing is I always "looked up" to that big company and always thought wow must be an honour to work for KPMG. I actually cannot believe that there might be a slight chance that it will close its doors. The penny is certainly starting to drop even though in our country corruption generally goes unpunished. If directors are starting to resign then really - there is little to no hope let alone stability. .
Helen said:
on Wednesday 27-Sep-17 08:37 AM
Sure, it is very bad experience to deal with Gupta's for the massive company like KPMG. I am very surprised that auditors would even consider to take on client like Gupta's, this is truth that this is embarrassing for KPMG.
Thabitha said:
on Wednesday 27-Sep-17 08:28 AM
What a mistake I also think KPMG will be out and people will be losing their jobs such a big company these Gupta's must go really.
Mathilda said:
on Wednesday 27-Sep-17 07:53 AM
I was shocked to hear that such a big company as KPMG was involved with the Gupta's
I wonder what is the next step and how this will affect their employees
Bianca R said:
on Wednesday 27-Sep-17 07:25 AM
The real concern is that businesses and people do not want to be associated with the KPMG name at all at the moment or perhaps even in the future. One positive is that KPMG is an international company and do not believe that the international business will suffer too much, I cannot say the same for the SA division however. It is extremely scary how quickly a reputation can be ruined....
Jadine E said:
on Wednesday 27-Sep-17 07:08 AM
This has been one stressful year for KPMG, and there are much more businesses that will also be affected.
Jadine Richards said:
on Tuesday 26-Sep-17 04:04 PM
Given the current attitude toward the Gupta's and any of their affiliates, there is no need for an independent investigation. Public opinion has already deemed KPMG to be complicit in illegal activities. I would put my money on them being out of business soon.
Jolene said:
on Tuesday 26-Sep-17 02:45 PM
We will have to wait and see what the future holds for KPMG but one thing is certain, their reputation is ruined. It is sad that so many innocent people will lose their jobs.
Clare said:
on Tuesday 26-Sep-17 02:30 PM
This is Bad, I am sad for the people that are losing there Jobs I mean this country already has such a high unemployment rate as is, but things happen and its just life in South Africa
Jessica M said:
on Tuesday 26-Sep-17 12:49 PM
Can we close down our President too??? ha ha ha ha everything in our country is embarrassing and corrupt. Nothing changes yet innocent people get affected. Poor KPMG a hard lesson will be learnt.
Sinead said:
on Tuesday 26-Sep-17 12:43 PM
This is actually a topic that came up quite a bit this passed weekend with different circles I interacted with... I must say I am intrigued to see what will happen to KPMG as everyone in the company has obviously been told to keep quiet about it all.
Sinead said:
on Tuesday 26-Sep-17 12:41 PM
This is actually a topic that came up quite a bit this passed weekend with different circles... I must say I am intrigued to see what will happen to KPMG as everyone in the company has obviously been told to keep quiet about it all.
Nina said:
on Tuesday 26-Sep-17 12:31 PM
I was quite shocked to hear that such a big well known company were involved in these type of things. It is sad to think that so many people might be left without a job soon, just because the main peanuts in the company decided to make poor decisions. Lets hope they can recover from this.
Jessica Apfel said:
on Tuesday 26-Sep-17 12:18 PM
KPMG is an international company but I do believe that their South African division won't survive for much longer! With the loss of 6 multi-million rand clients - it is undoubted that their reputation is tarnished and similar clients will follow suit! The Independent Regulatory Board for Auditors are due to investigate KPMG's 'Gupta Audit' - the results from this board will determine KPMG's fate in SA. I do have a few friends that work for KPMG and have indicated that they have not yet felt the affect of this scandal and it remains within the top level (for now at least). That being said though, KPMG employees will be afforded the opportunity to sue the company for damages as a result of their tarnished reputation and inability to find alternative employment - should it come to that!
Jessica Apfel said:
on Tuesday 26-Sep-17 12:16 PM
KPMG is an international company but I do believe that their South African division won't survive for much longer! With the loss of 6 multi-million rand clients - it is undoubted that their reputation is tarnished and similar clients will follow suit! The Independent Regulatory Board for Auditors are due to investigate KPMG's 'Gupta Audit' - the results from this board will determine KPMG's fate in SA. I do have a few friends that work for KPMG and have indicated that they have not yet felt the affect of this scandal and it remains within the top level (for now at least). That being said though, KPMG employees will be afforded the opportunity to sue the company for damages as a result of their tarnished reputation and inability to find alternative employment - should it come to that!
Celeste said:
on Tuesday 26-Sep-17 12:09 PM
My personal opinion is I agree and also think KPMG will close down by the end of the year . They think with all the staff leaving , they will be able to cope .
Johannesburg based attorney specializing in personal injury matters including Road Accident Fund claims and medical negligence matters. My interests include golf, reading and the internet and the way it is constantly developing. I have a passion for life and a desire for less stress!
