Saica outlines process

CLEARS WAY TO DEAL WITH ISSUES

#GuptaLeaks implicates Saica members in state capture, including Eskom CFO Singh and some KPMG accountants.

The South African Institute of Chartered Accountants (Saica) has called a press briefing to outline how complaints and disciplinary processes are handled regarding members accused of wrongdoing.

It was responding in the wake of #GuptaLeaks that implicated some of its members in state capture, notably Eskom CFO Anoj Singh and a number of chartered accountants at KPMG (Gupta company auditors for 15 years).

Saica briefed members on processes underway regarding members accused of alleged improper conduct. It couldn’t divulge details to media, but CEO Dr Terence Nombembe, said it has a “clearly defined professional process” to deal with these matters and is attending to them.

The body can respond to complaints filed by the public against its members. This initially takes the form of a complaints affidavit submitted to Saica, which is vetted by a professional conduct committee (PCC) before being considered for further action. The PCC is also empowered to conduct investigations into alleged improper conduct if there is no formal complaint. If a member is found guilty of improper conduct, the PCC has authority to impose a caution, reprimand, a fine of up to R250 000 per charge, or suspension of up to 12 months. Should it believe the alleged improper conduct would require a greater sanction than it is mandated to impose, the matter is referred to the disciplinary committee chaired by a senior advocate, which uses the services of external attorneys as pro forma prosecutor to present the case.

This committee conducts a formal hearing where oral evidence is led. Accused members are entitled to legal representation.

Sanctions handed down by this committee include fines up to a maximum of R500 000 per charge and suspensions ranging from a few months to a five-year maximum. In extreme cases, a member can be excluded from membership for a maximum of 10 years.

The body can also refer cases to regulatory bodies, such as the Independent Regulatory Board of Auditors for investigation and sanction.

Where an accused person is found guilty and sanctioned by a disciplinary committee, the PCC and disciplinary committee may direct Saica to publish the details of the offence and sanction imposed, and the name of the accused person and their firm.

Due to confidentiality rules, Saica won’t inform anyone other than prospective employers and employers whether the person is in good standing.

For example, if Singh was found guilty of falling short of the requirements of being a chartered accountant, no one besides Eskom would know.