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Founder & CEO of KEP Consulting (Pty) Ltd, Phuti Phukubje tells of the birth of the company and it's journey towards it's present-day success...

KEP Consulting’s resilience was tested when it was hit by the Covid-19 pandemic while it was still in its formative years. The company managed not only to survive, but to grow in leaps and bounds as it exited this challenging and tragic period,” says Phuthi Phukubje, CEO of KEP Consulting (Pty) Ltd.

From humble beginnings

Phukubje says the company was born in 2013 after a discussion with two friends at the Office of the Auditor-General in Brooklyn, JHB. At the time he was the Executive for Audit and Investigation at Sentech SOC Ltd.

He was soon joined by Elisha Musindo who was then a Director at Rakoma & Associatesand it was with the both of them at the helm of KEP Consulting that the company started witnessing its first spurt of growth. Phukubje is quick in acknowledging Musindo’s inputs during these early years.

“Elisha and I worked tirelessly through this period, and he contributed immensely to building the company,” Phukubje says.

Although there was work coming in, the assignments were small and short, and were barely enough to keep the lights on. “I had to use a lot of my personal savings to pay for KEP’s operations. Some close friends even advised me to go back to a full-time job. I persevered and had faith that one day we will break through,” says Phukubje.

“But in 2021/22 during the Covid pandemic, the strain was too much and Musindo left to join another firm,” he laments. “Things became extremely difficult as I navigated the journey alone.”

Some of the small projects KEP were awarded included assisting the Ellias Motswaledi Local Municipality with the investigation of irregular, fruitless and wasteful expenditure in a period of three years. The consultancy helped Metsimaholo Local Municipality with audit support, preparation of AFS using GRAP, identification of irregular expenditure, and preparation of AFS Notes relating to UIF.

KEP conducted a review on the AFS for EHC on GRAP. The consultancy also prepared the AFS for the Mining Health & Safety Council. Building a reputation of success, and despite its own financial challenges, the consultancy ensured that it improved the status quo of the client after each and every assignment that it took on.

KEP limped through the Covid pandemic period. But survived!

Whew! A breather...

In March 2023 KEP was awarded a contract to prepare annual financial statements using GRAP and also to resolve prior audit qualifications at the Housing Development Agency (HDA). The contract was relatively small, but made a difference. "I worked on the contract together with Mr JR Aguma, a long-time credible friend to ensure that the challenges facing HDA were adequately addressed - I knew that the HDA’s issues would be a thing of the past!"

In the same month KEP got a contract to assist with technical IFRS, preparation of AFS as well as policies and procedures (SOP) at the Airports Company of South Africa (ACSA).

“In April of the same year we got a contract at Broadband Infraco (BBI) to prepare AFS and to provide audit support,” Phukubje continues. “On this project I worked with my friend, Thilivhali Ramawa, who had been CFO at NEMISA back in 2018.”

“Things were finally looking up!”

In June 2023 KEP was awarded a contract to assist with Tender Compliance Review for the 2022/23 year at a Municipality in Limpopo.

The consultancy also helped with unauthorized, irregular, fruitless & wasteful expenditure investigation, the write off recommendation

to Municipal Public Accounts Committee (MPAC), and ultimately to the special council. KEP cleared about R7.3B through this exercise. It also saved the municipality from prior recurring audit findings. In terms of Tender Compliance Review, KEP helped the municipality because the files were either incomplete or non-existent.

Further strides in the Public Sector

In July 2023, KEP was awarded a standing contract at SALGA where they will be allocated struggling municipalities. To date the consultancy has been allocated Emfuleni Municipality in Sedibeng until 08 December 2023 for audit support and capacitating the office of the CFO with AGSA audit assistance.

“We welcomed our first intake of trainee auditors/accountants that are funded by Local Government Seta (LGSETA) in July 2023. This was done through collaboration with the LGSETA and the South African Institute of Government Auditors (SAIGA). The aim is to produce qualified RGAs who specializes in public sector accounting,” says Phukubje. “We are pleased that we are now able to impart our knowledge and experience to others,” he acclaimed.

National Treasury research has proven that there is a scarcity of qualified public sector accounting skills and LGSETA has responded to the cry by funding firms like KEP, so that they can have the capacity to train and produce quality professionals.

The trainees will be exposed to SCM, assets, financial statement preparations, VAT, Income Tax, compliance, etc. In three years they will write board exams and qualify as RGAs.

In Sept 2023 KEP attended its first SAIGA Conference at Emperors Palace where they networked and met many stakeholders.

Continued growth

KEP has also recently acquired new offices at Nina Park, Pretoria North (just 5 km from Wonderpark mall). The consultancy’s staff complement has increased to 20 by September 2023.

“What gives KEP its competitive advantage over other firms is the experience we acquired at the Auditor-General SA (AGSA) in the past,” says Phukubje. “That experience is rock-solid. We can turn public sector entity around; municipality, SOE, government departments, etc.”

Relevant experience

Phukubje adds that sitting in various board and council meetings and chairing audit committees has helped tremendously in terms of solidifying KEP’s experience in the public sector.

The CEO’s experience includes:

• NEMISA: Member of Board and Chair of ARC

• William Humphrey Art Gallery: Member of Council and Chair of ARC (Gallery received clean audit three years in a row)

• MDDA: Chair of ARC - MDDA received three clean audits in a row

• Mining Qualification Authority: Chair of ARC - MQA received two clean audits in a row

• Police Civilian Secretariat: PCS received two clean audits in a row

• Department of Social Development: DSD received three clean audits in a row

Striving forward Phukubje cannot resist a reflection of the past few years: “We are grateful to our partners who have supported us through the difficult time and those who have seen our potential and gave us an opportunity to make a difference,” Phukubje adds.

KEP continues to make an impact in the Public Sector with a concerted focus on struggling municipalities.

“We are ready to serve the nation by helping municipalities, and helping professionals grow,” the CEO concludes. 