SAICA

Overview of media coverage related to the Chartered Accountancy profession in South Africa – 2017 and 2018

The Chartered Accountancy profession is currently faced with significant criticism following the purported misdemeanours of CAs(SA). The summary below gives a media coverage update on the status of what is currently happening in South Africa.

  • 7 August 2017: SAICA hosted an Ethics and Discipline Forum with members to address activities in the media with regard to our members.
  • 15 August 2017: SAICA hosted members of the media to discuss SAICA’s Ethics and Discipline with regard to our members.
  • 15 September 2017: The Institute issued a statement titled: SAICA vows to maintain the integrity and ethical standards of the chartered accountancy profession in South Africa
  • 15 September 2017: KPMG South Africa announced leadership changes and key findings arising from KPMG International’s Investigation. SAICA reacted to this on SABC News, eNCA, and CNBC Africa.
  • 21 September 2017: Then SAICA CEO, Terence Nombembe, appeared on eNCA, discussing the responsibility SAICA has to the chartered accountancy profession.
  • 22 September 2017: SAICA announced its unconditional support for an Independent Inquiry into the conduct of certain members of SAICA employed by KPMG.
  • 29 September 2017: SAICA informed and updated members and associates via bulk e-mail about the current state of what the Institute is doing to address ethics and discipline.
  • 2 November 2017: The Ntsebeza Inquiry was convened by SAICA after receipt of allegations that some of its members employed by KPMG have allegedly engaged in conduct which is in contravention of the SAICA Code of Professional Conduct.
  • 24 November 2017 – The Ntsebeza Inquiry, initiated by SAICA on 2 November 2017 called for submissions by interested parties to make representations to the Ntsebeza Inquiry on the conduct of any member/s of SAICA employed by KPMG South Africa with regard to work conducted by the firm related to possible contraventions of the SAICA Code of Professional Conduct.
  • 6 December 2017: eNCA Taking Stock: SAICA CEO Terence Nombembe spoke on rebuilding the trust of the CA(SA) profession and addressed the Steinhoff matter, one day after it was first reported in the media.
  • 7 December 2017: eNCA Moneyline: Panel discussion looking at the growing concerns around the credibility of CAs(SA)  and A Panel discussion looking at the growing concerns around the credibility of CAs(SA) with the latest saga being Steinhoff (Part 2)
  • 15 December 2017: SAICA sent a second ethics and discipline update via bulk e-mail to members and associates.
  • 20 January 2018 - The Ntsebeza Inquiry issued a statement giving an update on the progress of the Inquiry.
  • 31 January 2018 - The Ntsebeza Inquiry announced that it is moving into the hearing phase of the investigation. 
  • 19 February 2018: Then CEO of SAICA, Terence Nombembe, gives a speech at the opening of the Ntsebeza Inquiry Hearings.
  • 22 February 2018: Advocate Dumisa Ntsebeza SC, who chairs the Ntsebeza Inquiry, released a statement praising SAICA for its commitment to the process.
  • 2 March 2018: The Ntsebeza Inquiry adjourned the hearings on 21 February 2018 to allow those who will take the witness stand enough time to prepare themselves. In ensuring procedural fairness, the Inquiry must ensure that every implicated member of SAICA, in relation to the KPMG saga, is aware of the allegations against them, and that all of them will be given an opportunity to cross-examine witnesses, if they so wish or are so advised.
  • 07 March 2018: The SAICA Board informed members and stakeholders of the decision to second SAICA’s Chief Executive Officer, Terence Nombembe, to the Judicial Commission on State Capture.  The board acceded to a request by the Deputy Chief Justice, Raymond Zondo.
  • 08 March 2018: The Chairman and Acting CEO of the South African Institute of Chartered Accountants (SAICA) released a statement assuring the South African public that SAICA and its entities have never been party to any form of state capture or been consciously involved with those accused of any such dealings.
  • 11 March 2018: VBS Mutual Bank is placed under curatorship. KPMG is the bank’s external auditor whereas PwC was its internal auditor.
  • 13 April 2018: SAICA contributed to a feature article on Business Brief magazine titled “Accounting Accountability”. SAICA’s contribution was Accountability in the accounting profession and the role of SAICA.
  • 14 April 2018: KPMG announces the resignation of the lead audit partner on VBS Mutual Bank. Sipho Malaba and Dumi Tshuma, who did not disclose loans that they held with VBS, resigned with immediate effect. They are facing disciplinary charges from KPMG.
  • 15 April 2018: KPMG briefs the media regarding a raft of new measures it will implement to reassure clients on its ethics and the quality of its audit work. This includes the review of at least 200 audit files going back two years and integrity checks on senior employees.
  • 17 April 2018: Auditor General Kimi Makwetu announced his office’s decision to terminate, with immediate effect, the government’s auditing contracts with KPMG and Nkoki Inc.
  • 18 April 2018: SAICA, in collaboration with Wits University, held a panel discussion on Ethics, the first in a series of discussions. The topic was: Has the South African accounting profession lost the public’s confidence, and if so, what does it need to do to restore that confidence?
  • 24 April 2018: A week after the Auditor General announced the termination of public auditing contracts with KMPG and Nkoki Inc., the latter announced it has taken the “very painful and difficult” decision to undergo voluntary liquidation.
  • 30 April 2018: Old Mutual Shareholders vote overwhelmingly in favour of keeping KPMG on as external auditor.
  • 3 May 2018: Barclays Africa becomes the first major bank, and biggest client, to cut ties with KPMG, saying it will propose to shareholders to vote against the reappointment of KPMG at its AGM.
  • 4 May 2018: Redefine Properties and Sibanye-Stillwater follow suit, ditching KPMG as auditor.
  • 4 May 2018: SAICA Acting CEO, Fanisa Lamola, featured on SABC News to give an overview on the state of the profession in South Africa.
  • 08 May 2018: Lindie Engelbrecht was interviewed on Classic FM – Business Update regarding the relevance of professional bodies that cater for accountants.
  • 28 May 2018: The Ntsebeza Inquiry announced that it is entering the final stage of its work. This is according to Adv. Dumisa Ntsebeza SC, who said that the Panel is currently wrapping up and will soon start to write its report.
  • 01 June 2018: The SAICA Board announced that it has accepted KPMG’s offer to resign as SAICA’s external auditors, citing possible perceived independence concerns if they were to perform the 2018 audit as a result of the current SAICA-appointed Ntsebeza Inquiry which is looking into some of the former and current KPMG-employed Chartered Accountants.
  • 7 June 2018: SAICA announced that is has amended its by-laws to permit the issuing of public statements by the SAICA chief executive officer (CEO) regarding the institution of any complaint or investigation or action against a member once a draft charge sheet or a charge sheet has been issued to such member and such matter, complaint, investigation or action is, in the opinion of the CEO, in the public interest. This decision is aimed at ensuring that the transparency of the SAICA disciplinary processes is enhanced.
  • 19 June 2018: SAICA informed stakeholders and the public that, after an extensive period of investigation, charges of misconduct have been preferred against Mr. Anoj Singh.
  • 22 June 2018: On 22 June 2018, SAICA began disciplinary proceedings against accused member and former Thuthuka Bursary Fund (TBF) programme manager, Mr Khaya Sithole.  During the proceedings, Mr Sithole issued a statement on this and other matters. The Thuthuka Bursary Fund wishes to respond to the statements as they relate to the bursary fund.
  • 22 June 2018: The SAICA Board noted the statement issued out by Mr Khaya Sithole, which makes mention of allegations against SAICA’s acting CEO and executive team.  The SAICA Board distances itself from all the allegations and wishes to reiterate its support for its whole leadership team.
  • 06 July 2018: SAICA reiterated its determination to restore the public’s trust in a profession whose very reputation is based on ethics and standards. It therefore placed on record its stance on the removal and suspension of members implicated in corruption and governance failures.
  • 12 July 2018: SAICA Acting CEO, Fanisa Lamola, gave an exclusive interview to Financial Mail’s Hanna Ziady earlier on 2 July 2018, the article was published on 12 July 2018.
  • 08 August 2018: SAICA Acting CEO, Communication Team met with Media24 editors regarding the state of the profession
  • 29 August 2018: SAICA continued disciplinary proceedings against accused member and former Thuthuka Bursary Fund (TBF) programme manager, Mr Khaya Sithole. The hearing was postponed to a later date.
  • 10 October 2018: The Great Bank Heist: Investigator’s Report to the Prudential Authority by Advocte Terry Motau
  • 17 October 2018: SAICA Acting CEO, Fanisa Lamola one-on-one interview with eNCA's Aviwe Mtila – 17 October 2018
  • 11 October 2018: SAICA’s response to the VBS Mutual Bank report released by Advocate Terry Motau SC on 10 October 2018
  • 22 October 2018: SAICA Acting CEO, Fanisa Lamola one-on-one interview with Fin24’s Tehillah Niselow
  • 09 November 2018: SAICA begin disciplinary proceedings against former VBS executives Andile Ramavhunga and Tshifiwa Matodzi. Andile Ramavhunga and Tshifhiwa Ramatodzi failed to appear at the disciplinary hearings, the hearing was postponed to a later date
  • 24 April 2019: SAICA CEO on the state of the profession – Moneyweb