According to Sox First, there are rumblings that the terms of KPMGs deal with the US Department of Justice are too onerous:
The Justice Department requires KPMG employees’ statements to be in line with the statement of facts that the company agreed to when it did the deal. But here’s the rub: an employee who contradicts the statement of facts (and it’s the prosecutors who determine what’s contradictory) actually puts the company in breach of the agreement and at risk of being prosecuted.
Onerous indeed but KPMG agreed to the terms no doubt after careful consideration and consultation with their lawyers. So it’s a bit rich to say the terms were too harsh, especially when we’re talking about criminal fraud to which the firm has admitted. Next, they’ll be asking forgiveness. That’s something they’ll have to earn the hard way. A certain amount of contrition wouldn’t go amiss instead of moaning. But then as Sox First says:
Sounds like the kind of deal you cut when the other party has put you over a barrel.
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