KPMG still set to move to new Cape Town office despite delays

30-01-2018
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Fin24.com
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Cape Town - If all goes well, KPMG could be moving into its new offices in Cape Town's CBD in a few months' time.

What seemed like the construction of the building coming to a halt some months ago, made many Capetonians wonder whether it had anything to do with an investigation launched by KPMG International of its SA operations as a result of information contained in the #GuptaLeaks.

It also seems that some of the KPMG logos, which used to be prominently displayed on the building, have been removed.

In the past KPMG did some work on behalf of the Guptas as well as for the SA Revenue Service (SARS). A KPMG SARS report was used by the Hawks and the National Prosecuting Authority in launching an investigation into a so-called SARS rogue unit, with former finance minister Pravin Gordhan being "implicated" in the report. However, KPMG later said it was wrong.

KPMG SA said it regrets that its association with the Guptas, and their business entities went on far too long. Dave Williams-Jones, CEO of FWJK Developments, told Fin24 the completion of the R550m development of the new building is on track for the completion of Phase 1 by the end of April 2018.

Phase 1 consists of offices and ground floor shops.

Overall completion of the three residential floors are expected to be at the end July 2018.

"Reaching its maximum height of 23 storeys, the building has now topped out and its blue and white facade will soon be revealed when the protective coverings are removed," added Williams-Jones.

NMC Group confirmed that it has been placed in business rescue.

Scott Taylor, a representative of Ziningi Developments, which owns the new building being developed on the Foreshore, told Fin24 on Monday that progress is being hampered due to the main contractor having gone in business rescue.

Taylor emphasised that construction of the building is, however, continuing and it is still "very much active and alive".

"We are just not sure how long the business rescue process [of NMC Group] will take," explained Taylor.

Lance September, managing partner at KPMG, told Fin24 that as far as he knows, KPMG is still planning to move to the new building. He is aware of some delays due to one of the building contractors having gone into business rescue, he said.

"We have to wait until we are notified as to when we would be able to move into the new building," said September.

NMC Construction Group confirmed that it has gone into business rescue.

According to its website, the company was founded in 1983 and established itself as "a niche Western Cape-based industrial contractor with a national footprint".

In 2004 it entered into a BBBEEE agreement with F'Stars, a black women-owned company entity. The partnership changed its leadership and shareholding structure, aligning it to SA’s transformational objectives, according to the website.

The empowerment deal was regarded as providing new business growth opportunities.

Bizcommunity reported in October 2017 that Phila Jordan - described as a private investor in the mining and construction industry - became the new executive chair of NMC Group when he bought a 51% stake. This took the company's BEE ownership to 63%.