KPMG's withdrawal an attempt to discredit Sars - Moyane

KPMG's withdrawal an attempt to discredit Sars - Moyane

The South African Revenue Services (Sars) is considering taking legal action against auditing firm KPMG.

Sars Tom Moyane
Olivia Phalaetsile

It comes after the firm withdrew parts of its 2016 report into the so-called rogue unit within Sars.



On Friday, KPMG released a statement advising Sars that the conclusion and recommendations of the report should no longer be relied upon. 


"The evidence in the document provided to KPMG South Africa does not support the interpretation that Pravin Gordhan knew, or ought to have known of the rogue nature of this unit," KMPG said. 



The auditing firm says it failed to appropriately apply its own risk management and quality controls. 



Sars commissioner, Tom Moyane, says the admissions are part of an agenda against the revenue services. 



"Sars sees KPMG's conduct as nothing else but a dismal attempt to portray Sars, its leadership, and in particular Sars' commissioner as incompetent, corrupt, inefficient and involved in a witch-hunt," Moyane says. 



He says Sars is considering taking legal action, as the report is the intellectual property of the revenue services.

 


"We are considering taking legal proceedings for reputational damage to Sars including but not limited to a civil claim and report KPMG to the relevant statutory auditing bodies both locally and internationally among many other options," Moyane explains. 



When asked, who might be behind the witch-hunt, Moyane says he is not in the business of investigating agendas, but there is a hand that is trying to discredit the organisation. 



There's been a massive leadership shakeup at KPMG as a result of the Sars report and work the firm has done with the Guptas.

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