Senior executives suspended at Saipa

Four members of the executive of the South African Institute of Professional Accountants (Saipa) have been placed on precautionary suspension pending the outcome of a forensic investigation.

The investigation was initiated by the Saipa board following governance concerns and serious allegations relating to irregular expenditure, costs associated with the development of an unapproved strategy, and other unaccounted spending.

Chief executive Shahied Daniels and operations executive Gavin Isaacs were suspended – and when it was discovered that fellow executives Nosheena Mansoor and Thomas Nyamvura were attempting to disrupt the investigation, they were suspended too.

Saipa chair Prem Govender says in her communication to members that the precautionary suspensions do not suggest or presume wrongdoing or guilt.

Tia van der Sandt, the institute’s risk and compliance committee chair, has been appointed acting chief executive.

The allegations 

The allegations being investigated include:

• A variety of irregular expenditure relating to overseas travel without board approval;
• Costs associated with the development of an unapproved strategy, which seeks to globalise Saipa’s professional designations, without board or member approval;
• Setting up of an international Saipa global entity to be based in Switzerland without board or member approvals; and
• Training and other unaccounted expenditure related to the Centre of Future Excellence and the unauthorised interception and hacking of the chair’s emails.

The investigation

Govender says Saipa has identified a “suitable service provider” to conduct the forensic investigation, and more details in this regard will be shared in due course. The investigation is expected to be concluded early next year.

A group of “concerned members” wrote a letter to the board requesting a special general meeting of Saipa members.

In the letter, the group says the appointment of Van der Sandt as acting chief executive was “unconstitutional and inappropriate”. 

This is factually and legally incorrect, says Govender. The appointment was made in accordance with the Saipa constitution. “Her appointment was in terms of a board resolution that was passed following the suspension of the chief executive … Her appointment will steady Saipa’s affairs during these difficult times,” Govender says in written answers to a request for comment.  

State of crisis 

The concerned members also allege that Van der Sandt has created a “state of crisis” within the institute and that additional executives and senior managers have threatened to resign.

“There are allegations that the board and the acting CE are running the organisation through a state of terror, including the illegal interception of employees’ private and business communications,” the group states. 

Govender says this is untrue. “The acting CE has taken it upon herself to assure staff members that they continue to be the most valuable assets of the organisation and that the business of the organisation will not be deterred by the employees who have been suspended.”

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The group also alleges that Saipa may lose its membership of the International Federation of Accountants and its accreditation with the Independent Regulatory Body for Auditors (Irba).

“This is untrue and pure malice,” Govender says in her communication to the members. 

No impact on merger talks

Govender also notes that the suspensions affect none of the merger initiatives that have started between Saipa and the South African Institute of Government Auditors.     

Saipa represents qualified professional accountants in practice, commerce and industry, academia, and the public sector, and has over 10 000 members. According to its website, it actively advocates and promotes ethical and responsible behaviour within the profession to retain public trust and confidence.

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