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I am sure everyone has been following the story of KPMG and their involvement with corrupt activities. The evidence is irrefutable, yet only 2 listed companies-Sygnia and Sasfin have so far had the guts to take corrective action. It is therefore incumbent on us, as shareholders, to start putting pressure on the companies that use KPMG services and that we are involved with, by firstly voting at the AGM against their re-appointment (ususally resolution no.2) and secondly, to vote against the re-appointment of those involved in the audit committee. It is perhaps, also encumbent on those of us that have some investments (RA's, pension) etc to put pressure on the money managers to vote likewise. I am dissappointed with corporate SA for not taking tougher action. All we have to do is look North to the UK to see the impact that corporate action had on Bell Pottinger. What are your thoughts?
To be fair to to the fund managers and here AG comes to mind - they have generally consistently even if in some instances belatedly ( and really I should be saying the delay relates more to their
informing investors of past actions taken) supported their client's interests - ie their investor's....by taking to task recalcitrant management on issues of business practice - and shareholder value.
Sygnia are Johnny-come lately's - but the lady who rules there is much more inclined to promote her actions than the bigger active managers. Another would be Coronation who have been good. As for the cozy auditing profession.....the more share holders actually take the trouble to vote out these old boys clubs the better.
I am beginning to find this whole KPMG and private sector matter more than a little annoying.
The real problem is governemnt - they keep redirecting us to the private sector - the "evil capitalist."
What good did all of those witheld audit reports do when it came to our criminal municipalities.
They were roundly ignored and yet more funds were flushed through the sluice to them... because a different set of "standards" applies to government.
Zuma has openly stated that western laws are not for Africans - yet at times like this our government is of so concerned about advanced audit compliance and the resposibility of the auditor.
Thye were quite happy when KPMG prostituted itself to meet their needs.
Just another oppurtunity to top up the slop trough for some more ministerial feeding.
Surely the country should be more concerned about how El Presidente acquired a half billion rand home in the Caribbean?
Surely that should be the lead item in every paper... from The Sowetan to Businessday?
After all, morality is a top-down affair!
Unfortunately, there is not much we can do to change what government and all the other snouters and their cadres are doing. While the NPA, Hawks or, whatever other bird, do nothing and getting paid by the taxpayer to do so, despite the overwhelming evidence it is up to right thinking people to do what they can within their sphere of influence, As shareholders we have some influence and hence the call. I was not impressed with statements by respected people such as Adrian Gore, Trevor Manual and Old Mutual this week basically trying to defuse the outcry by saying "give KPMG another chance". I say NO Way. KPMG knowingly acted in a fraudelent and unethical manner. Jusr ask those good people from SARS who lost their jobs. As citizens we must do what we can to prevent this beautiful country from sliding into the abyss. Kudos to Wesgro for also taking the right action. As shareholders, you have the power to Just Do The Right Thing.
There is no "right thing" in this place!
Our taxes are being used to throw a great party.
I am punchdrunk from all of the reports of corruption.
Companies are there to turn a profit - it is an absolute - even in terms of our company law - and "the good people" at SARS, themeselves, wouldn't have it any other way.
It seems to me that any company that associates itself with this regime will come out filthied.
KPMG are a bunch of... but... I invest in companies whose directors, I must believe, are competent to appoint acceptable auditors.
That is as far as I will go in doing the right thing.
In any cae, companies will dismiss KPMG if they feel that SARS will frown on KPMG signed returns.
The market will settle the matter.