Former SARS execs to take legal action against KPMG

Former SARS execs to take legal action against KPMG

The officials have instructed their lawyers to prepare a case against the auditing giant.

Sars branch Pretoria

Five former officials from the Revenue Services has decided to take legal action against KPMG, the auditing firm that produced a discredited report implicating them in alleged wrongdoing.

This is according to a Sunday Times report, which a lawyer, representing some of the officials, confirmed to Jacarandafm News.

KPMG compiled a report into an alleged so-called rogue unit at the SARS which allegedly tapped the offices of the National Prosecuting Authority (NPA).

Last year, the auditing firm withdrew the report's conclusions and recommendations, citing its standards were not upheld in the investigation.

"The SARS Report refers to legal opinions and legal conclusions as if they are opinions of KPMG South Africa," KPMG said in its statement. "KPMG South Africa acknowledges that such opinions should have been caveated as recommendations of legal advisors and not formulated in the manner contained in the report.

Despite this, the Hawks served summonses on three former SARS officials in early March to appear in court in connection with an ongoing investigation in April.

But now the former deputy commissioner of SARS Ivan Pillay, former head of strategy Peter Richer, former head of high risk investigations Johann van Loggerenberg, and officials Adrian Lackay and Yolisa Pikie, are taking legal action.

"Shortly we will be instituting the appropriate proceedings against KPMG South Africa and KPMG International," says Werksmans Attorneys lawyer Bernard Hotz.

While he says he was unable to comment on the nature of the legal action, Hotz confirmed they are in the "final stages of preparing the appropriate papers".

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