KPMG’s South African wing will donate fees from scandal-tied Gupta family
The South African branch of accountancy firm KPMG said it will redistribute the fees it earned for the country’s scandal-hit Gupta family.
KPMG will repay 47 million rand (£2.7m) to several civil society organisations aimed at promoting ethical leadership and accountable governance, and some education non-profits, it announced today.
The firm has suffered a series of major setbacks in South Africa, leading to immense reputational damage. Last week, it overhauled its leadership in the country, appointing a new boss from rival PwC.
The auditing giant found itself engulfed in a national scandal involving the Guptas, a powerful family group who were close allies of ousted former President Jacob Zuma.
The Guptas, who fled after Zuma’s fall from power, are accused of trying to influence the award of government contracts through their links with the former leader.
Zuma and the Guptas deny all the allegations against them.
KPMG lost several partners and clients during the fallout from the scandal. It was forced to cut hundreds of jobs and shut down regional offices to cope with the loss of business.
In September last year, it released the results of a internal probe, which found there were several areas where behaviour “fell considerably short of KPMG’s standards”.
The scandal brought down British public relations firm Bell Pottinger, which was abandoned by clients after it was revealed to have played on racial tensions in its work for the Guptas.
KPMG South Africa’s executive chairman Wiseman Nkuhlu said: “The funding is an important step in ensuring redress for the actions of the past.”