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The Gupta scandal involves allegedly improper links between three Indian brothers and President Jacob Zuma.KPMG, which audited Gupta accounts for 15 years, played an enabling

The Gupta scandal involves allegedly improper links between three Indian brothers and President Jacob Zuma.KPMG, which audited Gupta accounts for 15 years, played an enabling role in the Zuma-Gupta state capture strategy played out across state-owned entities.The Gupta family is accused of wielding enormous political influence in South Africa under President Zuma's administration, including offering ministerial positions to members of parliament and ousting ministers who may have got in the way of their business interests.

It was reported that KPMG's senior employees were so close with the Gupta family that a number were invited to a 2013 Gupta wedding at Sun City, a lavish affair that was attended by politicians and the family.KPMG has also been accused of helping the Gupta family in tax evasion and corruption.While the firm denies any wrongdoings, it admits to missing several 'red flags' in relation to the Gupta accounts.

In 2016, KPMG terminated the relationship amidst growing concerns about the Guptas' links to President Zuma.KPMG in a statement said: 'KPMG South Africa regrets that its association with the Guptas and their business entities went on for far too long."

KPMG removed the leadership of its South African arm but said that it did not find any evidence of corruption or illegal action by staff.The new chief executive of KPMG's South African arm, Nhlamu Dlomu, said: 'This has been a painful period and the firm has fallen short of the standards we set for ourselves and that the public rightly expects from us."She assured that KPMG International would be committed to give their full support to KPMG South Africa for as long as is needed to restore trust and said, "I want to apologize to the public, our people and clients for the failings that have been identified by the investigation."

The accountancy and audit firm donated the 40 million rand (2.2 million pound)it earned in fees from Gupta -controlled firms to charity and refunded 23 million rand it earned compiling a controversial report for the South African tax agency.

Both President Zuma and the Guptas deny wrongdoing, claiming that they are victims of a 'politically motivated witch-hunt'.As a result of the scandal, KPMG has lost several audit contracts in South Africa, with other companies considering severing ties.The firm is under investigation by the South African regulators and risks being removed from the country's auditors' register.

Source: Adapted from Can KPMG Recover from the Gupta Curse? Assessing the State Capture Mess, 2018.

a)Who were the main characters and what are the ethical issues concerning each character?

b)How was the corporate governance in the above company?

c)Relate the above situation with the moral values.

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