South Africa accuses KPMG for withdrawing report implicating ex-minister

South Africa's tax agency on Monday accused KPMG of "unethical" and "unlawful" behaviour in withdrawing a report that suggested the former finance minister ran a rogue unit to spy on political leaders.

The global auditor is the latest international firm to become embroiled in factional battles within South Africa's political establishment. KPMG cleared out its South African leadership en masse on Friday after a damning internal investigation into work the firm did for businessmen friends of President Jacob Zuma.

In particular, it acknowledged "flaws" in a report for the tax service, completed last year, which implied that former finance minister Pravin Gordhan had helped set up the rogue unit in the service. Zuma sacked Gordhan in March.

On Monday, however, South African Revenue Services (SARS) commissioner Tom Moyane defended KPMG's original report and accused the firm of "abhorrent, unethical, and unprofessional conduct" in withdrawing it.

"I want to say the report by KPMG is not flawed. In fact the report from KPMG confirms conclusively, deeply so, that there is prima facie evidence of wrongdoing in this organisation (SARS)," he told a news conference.
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