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:


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