GuptaLeaks: KPMG missed more money laundering red flags
27 Nov 2017

By Amabhungane and Scorpio, Daily Maverick

KPMG green-lighted three Gupta deals that bore multiple hallmarks of money laundering. In these, suspicious foreign entities paid millions for shares in dormant local shell companies.

Our investigations suggest that at least two of the transactions were a cover to bring dirty money home.

KPMG audited the Guptas’ Oakbay Investments when it received the money – around half a billion rand. The deals were specifically described in Oakbay’s audited financials.

KPMG had enough evidence to see that something was wrong – the deals appeared to be fake, as we will explain – yet it did not qualify its audit opinions.

The money was mostly sourced from Transnet kickbacks and provincial government funds.

There is no evidence that KPMG knowingly participated in corrupt schemes. It audited about 30 Gupta companies in South Africa, but not their offshore vehicles, meaning it would have struggled to discover the ultimate source of the money.

Photo by SolvencyIIWire

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