SOUTH AFRICA’S TAX AUTHORITY THREATENS LEGAL ACTION AGAINST KPMG

SOUTH AFRICA’S TAX AUTHORITY THREATENS LEGAL ACTION AGAINST KPMG

South Africa’s tax authority has threatened to take legal action against KPMG for disavowing a report it commissioned that was used to discredit the former finance minister, dragging the accounting firm further into a deepening political scandal.

The withdrawal of the report last week placed KPMG in the midst of a struggle between two sides of the ruling African National Congress over the alleged corruption of key state institutions under President Jacob Zuma, including the South African Revenue Services (Sars).

The KPMG report implied that an alleged rogue spying unit of Sars was set up under Pravin Gordhan, the former finance minister who was an outspoken critic of Mr Zuma and his connection with the billionaire Gupta family.

FT.COM / Joseph Cotterill and David Pilling

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Nigerians in South Africa
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