KPMG announces who will get its Gupta earnings (Photo Archive)
The former KPMG chief executive accused of having a cosy relationship with the Gupta family has resigned from his post at Alexander Forbes Africa with immediate effect following reports of his involvement in a lavish Gupta wedding in 2013.
Alexander Forbes announced Moses Kgosana’s resignation on Monday. He was due to be appointed chairperson of the group’s board on August 3, but has since withdrawn from the promotion. Kgosana was a non-executive director at the financial services provider, but allegations that his ties to the Guptas influenced KPMG’s audits of the family businesses have led to his resignation.
“Since becoming aware of recently published allegations in respect of KPMG which related to his previous position as CEO and Senior Partner of KPMG, he believes it is the correct course of action for himself, the company, its clients and shareholders,” Alexander Forbes said. “Mr Kgosana felt that the demands on his time in the role of chairperson of the company whilst attending to these allegations, will interfere with his deliverable expectations. Alexander Forbes welcomes this decisive action.”
KPMG has denied any wrongdoing since reports emerged that it allegedly looked the other away when a Gupta company, Linkway Trading, produced statements saying that the wedding – which took place in Sun City – was a business expense. KPMG was responsible for auditing Linkway’s books at the time. The auditing firm severed ties to the Guptas in 2016 amid increasing reports of state capture and South African banks’ closure of Gupta business accounts.
Kgosana had been invited to the wedding and in a thank you note that was emailed to the Guptas, he reportedly wrote: “My wife and I were privileged to attend and enjoyed every moment and every occasion. I have never been to an event like that and probably will not because it was an event of the millennium.”
The Daily Maverick reported that public funds from the Free State government reserved for a dairy farm project in Vrede were used to finance the luxury wedding.
KPMG has denied that its impartiality was compromised during the ordeal, but it is now being investigated by the Independent Regulatory Board for Auditors.