Why Sygnia fired KPMG

Sygnia Asset Management CEO Magda Wierzycka talks about ending their relationship with KPMG because of the auditing company's alleged Gupta links.

Wierzycka explains.

I met with them, I asked the questions, we did our investigation, and I recommended to the board of Sygnia Ltd that we replace KPMG as our auditors and the board has accepted our recommendation.

Magda Wierzycka, CEO Sygnia Asset Management

As to the reasons why...

KPMG obviously has been implicated in all the Gupta leaks.

Magda Wierzycka, CEO Sygnia Asset Management

She says when the stories began to emerge she distilled it into three areas.

KPMG were Linkway's auditors, and Linkway was the events company through which R30 million of taxpayers' money was laundered to pay for the lavish Gupta wedding.

Magda Wierzycka, CEO Sygnia Asset Management

The second issue that I had was with the Oakbay listing, where IDC gave Oakbay a substantial loan. Oakbay then listed on the JSE at an inflated valuation.

Magda Wierzycka, CEO Sygnia Asset Management

Thirdly, she also looked at KPMG's involvement in that R23 million report they did for Sars which talked about the rogue investigative unit.

And most importantly, implicated someone I have the utmost respect for, Pravin Gordhan.

Magda Wierzycka, CEO Sygnia Asset Management

Those are the questions she posed to KPMG, she says.

They responded saying they are investigating, take these issues very seriously, but do not believe they have done anything wrong.

But even if at the end of the day those investigations clear KPMG of any wrongdoing, no one disputes they were paid substantial fees and those fees came from taxpayers' money. Those fees are blood money, they were stolen from South African taxpayers.

Magda Wierzycka, CEO Sygnia Asset Management

Wierzycka says she would expect a company she wants to do business with to at the very least acknowledge that and donate that money to charity. But, she says, KPMG is not doing that.

KPMG were invited onto The Money Show but chose to send a written statement.

KPMG Southern Africa's current chief executive, Trevor Hoole writes, the company is disappointed by Sygnia's decision and reiterated its commitment to cooperate with Irba and due to ongoing investigation are limited in what it can say and so refrain from undertaking an interview at this time.

Listen to Magda Wierzycka below:


Recommended

by THE NEWSROOM

702 welcomes all comments that are constructive, contribute to discussions in a meaningful manner and take stories forward.

However, we will NOT condone the following:

  • Racism (including offensive comments based on ethnicity and nationality)
  • Sexism
  • Homophobia
  • Religious intolerance
  • Cyber bullying
  • Hate speech
  • Derogatory language
  • Comments inciting violence.

We ask that your comments remain relevant to the articles they appear on and do not include general banter or conversation as this dilutes the effectiveness of the comments section.

We strive to make the 702 community a safe and welcoming space for all.

702 reserves the right to: 1) remove any comments that do not follow the above guidelines; and, 2) ban users who repeatedly infringe the rules.

Should you find any comments upsetting or offensive you can also flag them and we will assess it against our guidelines.

702 is constantly reviewing its comments policy in order to create an environment conducive to constructive conversations.

Read More
Corruption Watch slams KPMG and Mckinsey (may refer them to the FBI in the USA)

Corruption Watch slams KPMG and Mckinsey (may refer them to the FBI in the USA)

Arabile Gumede interviews Corruption Watch Executive Director David Lewis.

Kgosana admits to emailing Atul Gupta, says he did nothing wrong

Kgosana admits to emailing Atul Gupta, says he did nothing wrong

The former KPMG Africa chief executive says those invited to the wedding footed their own bill.

Alexander Forbes board accepts Moses Kgosana's resignation

Alexander Forbes board accepts Moses Kgosana's resignation

Group Chief Executive of Alexander Forbes says Kgosana is a highly principled man who has best interest of their clients at heart.

#GuptaLeaks: KPMG audited Gupta company that laundered money for big wedding

#GuptaLeaks: KPMG audited Gupta company that laundered money for big wedding

According to amaBhungane, KPMG’s dealings with the Guptas leave the impression that the auditor was the family’s lapdog.

'Irregular expenditure by Government robs social grant recipients of R233/month'

'Irregular expenditure by Government robs social grant recipients of R233/month'

Government’s irregular spending is robbing the poorest South Africans of R233 each and every month, says KPMG’s Deborah Tickle.

Popular articles
Minister Zwane confirms trips to Dubai and Switzerland

Minister Zwane confirms trips to Dubai and Switzerland

EWN parliamentary correspondent Gaye Davis says Mineral Resources Minister Mosebenzi Zwane received detailed and tough questions.

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

Zweli Mkhize 'taken by surprise' with latest cabinet reshuffle

The ANC treasurer-general confirmed Mantashe’s comments that the President did not consult the ANC leadership on the reshuffle.

So what exactly is radical economic transformation?

So what exactly is radical economic transformation?

Wits associate professor of economics Christopher Malikane speaks to Azania Mosaka about the term that is being bandied about.

[CARTOON] Poephol With a Taste For Strife

[CARTOON] Poephol With a Taste For Strife

EWN's Dr Jack & Curtis take a look at the Spur confrontation that has taken the country by a storm.

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

‘My worst fear is being 80 years old and poor’ – famed actor Dr. John Kani

"My earliest memory of money is my father saying, ‘Why do you want to do this thing? How are you going to feed the family?'"

Who is Advocate Tembeka Ngcukaitobi?

Who is Advocate Tembeka Ngcukaitobi?

The EFF lawyer stole the show during the state capture report court battle.

5 advantages of leasing instead of owning a car (lower monthly payments!)

5 advantages of leasing instead of owning a car (lower monthly payments!)

Want (or need) a new car? Dale Scorer (a wealth manager at AlphaWealth) reckons you should consider leasing.

3 easy questions could bag you R2000!

3 easy questions could bag you R2000!

WIN R2000! But only if you can prove you're a whiz of the MTN Biz Quiz by answering the following three questions...