For decades KPMG has been getting away with corruption. As FIFA auditor, it was the lead performer in the international football body’s corruption scandal. As NBC reports, at least $150m in kickbacks and bribes and two world cup events were involved. In South Africa, the KPMG brand has become synonymous with state capture. So tightly knit with the Gupta family and Zuma clique were KPMG bosses that they attended a private Gupta wedding at Sun City in 2013 that was funded by taxpayers. And, KPMG were the architects of a fake report used to oust anti-corruption officials at the South African Revenue Service. But, KPMG is becoming a dirty word – even at KPMG these days. As Accountancy Daily reports, many KPMG employees are embarrassed to be hired by the professional services firm. – Jackie Cameron
By Thulasizwe Sithole
Staff at KPMG are embarrassed and some even regret their decision to join the Big Four firm, says Accountancy Daily.
The website for accountants says KPMG professionals are red-faced after the US regulator slammed the firm with a $50m fine for cheating in professional exams.
“Shortly after the news broke that the Big Four firm was being fined a record $50m (£40m) fine for a raft of grave governance issues, from stealing exam papers to changing the outcome of audit findings, the firm’s employees took to professional community app Fishbowl to air their grievances, calling the news ‘embarrassing’, with another employee commenting that it ‘makes me regret my decision’ to join KPMG,” it says.
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The scale of the scandal shook the profession, according to Accountancy Daily.
“When the sanction was issued, Steven Peikin, co-director of the SEC’s enforcement division, said: ‘The breadth and seriousness of the misconduct at issue here is, frankly, astonishing. This settlement reflects the need to severely punish this sort of wrongdoing while putting in place measures designed to prevent its recurrence.’”
The impact of the scandal and record fine has had a negative impact on staff, with survey on professional community forum Fishbowl, finding that three in 10 (29.8%) KPMG employees said the news confirmed their perception of the company, reports Accountancy Daily. Another third said that the news had changed their perception for the worse, it points out.
A KPMG spokesperson told Accountancy Daily: ‘We have learned important lessons through this experience and we are a stronger firm as a result of the actions we are taking to strengthen our culture, our governance and our compliance program.
“When it came to accounting staff from other firms, 54% said the news simply confirmed their perception of the firm, while 46% said the sanction did not alter their views.
“The survey ran from 13-18 June and was answered by a total of 650 accounting professionals and 300 KPMG employees. Currently, more than 7,500 KPMG employees use Fishbowl to discuss workplace issues,” adds the website.
