KPMG deny labour department audit report

2010-06-08 16:20

Auditing firm KPMG says a forensic report which alleges massive

corruption in the department of labour does not exist.

“KPMG has never issued a report regarding the department of labour

‘that had unearthed massive fraud and corruption’,” executive director Danie van

Heerden said.

“This is entirely consistent with labour minister Membathisi

Mdladlana’s adamant denial of any knowledge of such an audit report being

commissioned by his department.”

A report in the Sunday Times attributed the suspension of labour

director general Jimmy Manyi to a KPMG forensic audit that “unearthed massive

fraud and corruption” in the department.

“While KPMG has been engaged to perform certain professional

services with regard to the department of labour, for the past few years none of

these have included the commissioning of any forensic investigations,” Van

Heerden said.

“Any reference in the media to such a KPMG forensic audit report is

therefore factually incorrect.”

Mdladlana challenged KPMG to release the report today.

“I have never discussed such a report with my director-general,” he


“This is a classic example of statements that are devoid of any

shred of truth which add deeper darkness to a night already devoid of


Manyi made headlines recently when Norway’s ambassador to South

Africa requested a meeting with Mdladlana to raise concerns about his conduct

during an official meeting.

“There were certain things discussed and the way in which they were

brought up in that meeting, we did not appreciate,” Ambassador Tor

Christian-Hilda told Sapa recently.

Christian-Hilda and two other senior diplomats from the Norwegian

mission met Manyi in Pretoria in early March to discuss Norway’s co-operation

with South Africa’s decent work programme through the International Labour


He said black economic empowerment policies were discussed at the

meeting, but declined to elaborate further on his reasons for sending a

diplomatic note to International Relations and Co-operation Minister Maite

Nkoana-Mashabane, from where the matter was passed on to Mdladlana.

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