AGE OF (UN)ACCOUNTABILITY
Confidential out-of-court settlement between VBS and KPMG was R500m: source
Daily Maverick can disclose that the undisclosed controversial out-of-court settlement between auditor KPMG and the liquidator of VBS Bank, Anoosh Rooplal, was R500-million.
A source familiar with the matter told Daily Maverick that the sum was R500-million. The money will be paid to the liquidator to distribute among the creditors, who will likely feel short-changed.
News that a confidential settlement had been reached sparked a public outcry, including from trade union umbrella group Cosatu.
More than R2-billion was stolen from the bank in an elaborate fraud heist, and KPMG was hauled to court by the liquidator on the grounds that it had signed off on the fraud.
Rooplal had initially claimed damages of R864-million plus interest, but was sworn to secrecy following the out-of-court settlement.
Such settlements are usually labelled “confidential”, effectively gagging both parties until the matter is signed off with a court order.
Rooplal said in response, “by virtue of the confidentiality agreement signed with KPMG, we have no comment”. KPMG said it would respond later today. DM
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R500m is just appalling. KPMG should be paying the entire amount that went missing.
That means those that looted it would get away with it.
KPMG paying a massive fine for professional incompetence in the fiasco is not the same as nabbing and prosecuting the criminals involved in the fiasco.
We still need a “name, shame and prosecution” of the people that were involved in the diversion of funds, as well the names of the recipients of the funds.
Remember this admission of guilt every time you drive past a KPMG branded building.
The new SA motto (based on anc maths): I’m only guilty if I’m caught! And if I’m caught I will pay back the money! Then I’m not guilty!
…but not all the money.
Of course this is not just the ANC though… Bain KPMG and large multinationals have been doing this for a long time. Think of the financial crisis of 2008. How many people got prosecuted… like one programmer thrown under the bus.
Can anyone who’s a lawyer explain why criminal charges are not laid and corporate veil isn’t pierced? My understanding is that companies do the sums weighing up the expected value (cost) of being caught and paying a fine and the expected value (profit) of bending the rules.
And where is the prosecution of the ANC politicians and cadres related to looting at VBS Bank?
It was the EFF that we mainly in cahoots. I don’t know why they don’t make them pay back the money!
It was the EFF that we mainly in cahoots. I don’t know why they don’t make them pay back the money!
Some jail time is needed for those implicated in addition to full settlement.
I cannot agree more. These professional people with their huge salaries, nice cars and big bonusses are not doing their jobs and this is at the expense of the poor.
Totally agree – money has been followed into executives and politicians bank accounts, why have they not repaid ? They should all be in jail.
KPMG staff should be charged for criminal negligence! The money is not what this is about. It is about professionalism of professional people.
Shut them down. Repeatedly found wanting. Jail time
Although of course the report on VBS suggests more than just criminal negligence on the side of the auditors!
And once again the criminals are free to loot again, with only a slap over the wrist for their crimes…. It’s a freaking joke that the people that can actually do something about it, do absolutely nothing!!!
In 2023, KPMG’s global revenue was $36.4 billion, marking an 8% increase from the previous year. Source; statista.
I think R500 m is pretty good. Remember, the thieves were primarily at VBS and Councilors, mostly ANC
We demand transparency when it concerns government but we accept this clandestine , opaque deals when it is the fraud committed by the private sector. This is a public issue and concerns thousands of the poorest citizen of this country . The agreement should be made public.
Fully agree that all guilty parties should be prosecuted.
A claim against the auditors would be based on professional indemnity claim whose outcome is not always certain and such claims usually take years to settle, so at times this kind of settlement becomes pragmatic. If the Police and Courts do their part, more money could be recovered from those who benefited illegally from the theft.
Why has Deloitte not paid a similarly big fine for signing off on fraud multiples bigger that this at Steinhoff?
“It’s not the principle, it’s the money!” Why has the money not been recovered from the guilty, (EFF), parties? It should be easier to successfully prosecute these criminals now that KPMG has admitted guilt?
Indeed covering themselves