The South African Institute of Chartered Accountants (Saica) is threatening stern action against any of its members implicated in corruption at ailing power utility Eskom after revelations surfaced that audit firm Deloitte and Touche inappropri- ately benefited from a R207million con- sulting contract.  File picture: Henk Kruger/African News Agency (ANA)
The South African Institute of Chartered Accountants (Saica) is threatening stern action against any of its members implicated in corruption at ailing power utility Eskom after revelations surfaced that audit firm Deloitte and Touche inappropri- ately benefited from a R207million con- sulting contract. File picture: Henk Kruger/African News Agency (ANA)

Stern action over Eskom corruption promised

By Banele Ginindza Time of article published Jan 17, 2020

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JOHANNESBURG - The South African Institute of Chartered Accountants (Saica) is threatening stern action against any of its members implicated in corruption at ailing power utility Eskom after revelations surfaced that audit firm Deloitte and Touche inappropriately benefited from a R207million consulting contract. 

This was via a process that outgoing Eskom chairperson Jabu Mabuza described as being difficult to conceive of anything “less fair, equitable, transparent or competitive”. 

In a statement yesterday. Saica said that while it was mandated to deal with individual member chartered accountants and not firms, it would also rope in the Independent Regulatory Board for Auditors if the guilty party was a registered auditor. 

“Saica is already at advanced stages of disciplinary processes against various members implicated in matters related to contravention of Saica’s Code of Professional Conduct, emanating from several previous reports. Should any additional relevant information emerge from the Deloitte and Eskom matter, it will be dealt with accordingly,” said Freeman Nomvalo, Saica’s chief executive. 

- The South African Institute of Chartered Accountants (Saica) is threatening stern action against any of its members implicated in corruption at ailing power utility Eskom after revelations surfaced that audit firm Deloitte and Touche inappropriately benefited from a R207million consulting contract. Photo: File.


Investigating Journalism team Amabhungane said Deloitte had for more than two years managed to avoid being linked to state capture, while rival firms - McKinsey, KPMG, Bain & Company - were reeling from the scandal’s fallout. 

In a statement yesterday. Saica said that while it was mandated to deal with individual member chartered accountants and not firms, it would also rope in the Inde- pendent Regulatory Board for Auditors if the guilty party was a registered auditor.

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