Companies in South Africa are increasingly making their own calls on who to do business with, according to the governor of the South African Reserve Bank, following the scandal in the country surrounding the controversial Gupta family.
“This is a free society. It’s a free society, and various players in society are absolutely within their rights to take a posture that says that ‘I will not be able to do business with you, with that person,’ because these are private arrangements,” Lesetja Kganyago told CNBC on the sidelines of the International Monetary Fund meetings in Washington on Wednesday.
“I think what you’re seeing now is South African business, instead of complaining about corruption and maleficence, they’re actually taking a stance,” he added.
Global audit firm KPMG has been one firm embroiled in the Gupta scandal in South Africa. The billionaire Guptas have been accused by a public watchdog of improperly influencing government contracts, and an internal investigation at KMPG found that some of its executives ignored red flags regarding the family. KPMG dismissed its South African leadership team after the internal investigation.