#StateCapture: Firms must be held accountable to highest standards

Cape Town – Business Leadership South Africa (BLSA) has spoken out following allegations of state capture involvement by software firm SAP, auditors KPMG and consultancy firm McKinsey, among others.

BLSA said it has “noted the recent accounts of prominent businesses being implicated in reports of state capture”, it said in a statement on Tuesday.

It said that “business needs to be held accountable to the highest ethical standards, the law and the spirit of good governance. BLSA expects its members to respond appropriately to transgressions.

“Business’s ability to play its critical mission as a source of prosperity for all South Africans depends critically on enjoying the trust of society at large. Any conduct which undermines this trust is unacceptable,” it said.

Their warning follows news that a South African director at global consultancy firm McKinsey took a leave of absence following reports he misrepresented the firm in a deal involving Gupta-linked Trillian Capital Partners.

It also follows exclusive #GuptaLeaks reports by amaBhungane and Scorpio that point to alleged wrongdoing by KPMG and SAP.

In a June 30 story, they reported that the “KPMG's dealings with the Guptas leave the impression that the auditor was the family’s lapdog”. Email correspondence in their possession shows that KPMG were well aware of many of the key details surrounding Gupta family wedding at Sun City.

On July 11 story, they reported that SAP signed a “sales commission agreement” with a small Gupta-controlled company that specialises in selling 3D printers. “The terms suggest a thinly-disguised kickback arrangement: If the Gupta company were the ‘effective cause’ of SAP landing a Transnet contract worth R100 million or more, it would get 10 percent.”

McKinsey, KPMG and SAP deny wrongdoing, while the Guptas did not answer questions posed by amaBhungane and Scorpio.

SUBSCRIBE FOR FREE UPDATE: Get Fin24's top morning business news and opinions in your inbox

Read Fin24's top stories trending on Twitter:

We live in a world where facts and fiction get blurred
In times of uncertainty you need journalism you can trust. For 14 free days, you can have access to a world of in-depth analyses, investigative journalism, top opinions and a range of features. Journalism strengthens democracy. Invest in the future today. Thereafter you will be billed R75 per month. You can cancel anytime and if you cancel within 14 days you won't be billed. 
Subscribe to News24
Rand - Dollar
16.25
-0.5%
Rand - Pound
19.92
-0.7%
Rand - Euro
16.93
-0.9%
Rand - Aus dollar
11.25
-0.5%
Rand - Yen
0.13
-0.5%
Gold
1,800.84
-0.6%
Silver
21.11
-0.0%
Palladium
1,929.50
-0.9%
Platinum
934.50
-1.1%
Brent Crude
111.22
+3.4%
Top 40
62,150
+0.3%
All Share
68,855
+0.3%
Resource 10
70,930
+0.2%
Industrial 25
76,986
-0.1%
Financial 15
15,894
+1.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot