21/09/2017 19:29 BST | Updated 21/09/2017 19:31 BST

KPMG: Full Statement By Pravin Gordhan And Mcebisi Jonas

The former Treasury duo met KPMG International's chairperson on Thursday.

Mike Hutchings / Reuters
South African Finance Minister Pravin Gordhan and Deputy Finance Minister Mcebisi Jonas arrive for the 2017 Budget Speech at Parliament in Cape Town, South Africa, February 22, 2017. REUTERS/Mike Hutchings


In response to a request from the chairperson of KPMG International, Mr John Veihmeyer, Mr Pravin Gordhan and Mr Mcebisi Jonas met with a KPMG delegation led by Mr Veihmeyer. The new CEO for KPMG South Africa, Ms Nhlamu Dlomu, also attended.

Mr Jonas and I indicated that while we have agreed to meet KPMG, we reserve our legal rights.

We shared our strong feelings and disapproval of the manner in which KPMG SA has been involved in the validation of state capture and corruption in respect of both the South African Revenue Service (SARS) and companies of the Gupta family. KPMG has a moral duty to account for their conduct to the South African public and they have to be frank and transparent in their disclosures if they wish to restore their own reputation.

We insisted on full and proper disclosure of the role of various parties in the state capture project and the manner in which KPMG staff seem to have colluded in these processes - including the complete disregard shown by the management of KPMG.

The KPMG delegation asked that we recognize their commitment to SA.

Clearly, given the inadequacy of their earlier statement on Friday last week, further steps need to be taken by KPMG to be more open and frank with South Africans. This will determine whether KPMG can earn the respect and confidence of both corporates and the audit profession on the one hand, and the South African public on the other.