Newsome resigns

The Institute of Internal Auditors SA (IIASA) announced that Rob Newsome has resigned as director and chairperson of the body’s disciplinary committee.

This announcement was made in response to a Moneyweb article about him.

Newsome, a chartered accountant, faced a disciplinary hearing at SA Institute of Chartered Accountants (Saica). He was charged with failing to declare a conflict of interest when he earlier presided over the IIASA’s disciplinary process with regard to the internal audit executive of SA Airways (SAA) Siya Vilakazi.

During the hearing, Newsome denied that there was any real or perceived conflict. He said he discussed the matter briefly with IIASA chief executive Claudelle von Eck and the fact that the institute retained him as director and disciplinary committee chair showed that they trusted his judgment in the matter.

He also testified that the committee dismissed the complaint against Vilakazi on the basis of an affidavit without actually seeing it at the time of the decision.

“The role of internal and external auditors as well as the effectiveness of the professional bodies representing them has been thrust into the spotlight,” IIASA said. “This in relation to several scandals and controversies that [showed] the need for greater accountability and ethical behaviour.”

It said it has a mandate to hold its 8 000 members accountable. “However, in dealing with individual cases, we need to navigate our way carefully by balancing the interests of three parties which are the complainant, the general public and our member.”

It referred to Vilakazi’s case, which it said has been taken on appeal after the investigating and disciplinary committees dismissed it for a lack of evidence.

The IIASA said that no individual member of the committees has veto power and that declarations of interests are made at the beginning of each meeting.