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Hawks probe into Guptas: DA throws in KPMG statement

Sep 17 2017 19:00

Cape Town - The Democratic Alliance on Sunday said it handed over a statement by KPMG International to the Hawks to assist with an investigation into the notorious Gupta family.

The bombshell statement is about an investigation by KPMG International into its work on behalf of the Guptas as well as for the South African Revenue Service (SARS).

KPMG, in the statement issued on Friday last week, announced that KPMG CEO Trevor Hoole, chief operating officer Steven Louw, chairperson Ahmed Jaffer and five senior executives resigned. The auditor also withdrew its SARS "rogue unit" report.

DA spokesperson on finance David Maynier said the investigation into the audits of Gupta entities, including Linkway Trading, a South African company, controlled by the Guptas, which was allegedly involved in tax evasion, established that “management of many Gupta entities responded misleadingly and inadequately to audit teams enquires about the nature of related party relationships and the commercial substance of significant unusual transactions”.

He added that the investigation also identified “a series of misrepresentations from the client over the period that KPMG South Africa provided tax advice”.

FULL STATEMENT: KPMG execs quit over Gupta, SARS report

Maynier said this means that KPMG International and KPMG South Africa, may have information that is vital to an investigation by the Hawks into into Mines Minister Mosebenzi Zwane, Atul Gupta, Ajay Gupta, Rajesh Gupta, Ronica Ragavan and Kamal Vasram.

This probe involves allegations of racketeering, money laundering, assisting another to benefit from the proceeds of unlawful activities, and acquiring, possessing or using the proceeds of unlawful activities in terms of the Prevention of Organized Crime Act (No. 121 of 1998); and submitting false, or untrue, tax returns in terms of the Tax Administration Act (No. 28 of 2011).

It follows criminal charges laid by Maynier in July after revelations that public funds were allegedly washed through a complex web of front companies, and used to pay for Vega Gupta and Aakash Jahajgarhia’s wedding at Sun City in 2013.

"I have, therefore, furnished Major-General Zinhle Mnonopi with a copy of KPMG International’s press statement released on 15 September 2017, which may assist in the investigation being conducted by the Hawks," said Maynier.

"In the end, the investigation and the subsequent purge of seven senior executives, is unlikely to be enough 'red meat' to stop the bleeding at KPMG South Africa", he added.

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da  |  kpmg  |  hawks  |  david maynier  |  gupta family

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