Letter from the Editor

The dying embers are gone on the holiday season as we get into the business of the new year. I hope the holidays have left you healthy, hearty and marginally solvent and that you’ve returned into the saddle pumped up for 2024.

After all, there is a lot to look forward to this year, the celebration of the 30th anniversary of South Africa’s democracy, the keenly awaited elections and of course, the five big SAIGA events, including the annual conference.

From SAIGA’s perspective, 2023 was a successful year marked by several milestones, including the Institute’s 35th anniversary, the re-election of Phillip Rakgwale as SAIGA president, the re-evaluation of SAIGA competency framework, as well as the certificate of Recognition as awarded to the University of KwaZulu-Natal for the Bachelor of Commerce in Accounting degree.

The significance of this is that UKZN Bachelor of Commerce in Accounting graduates are now eligible for SAIGA membership as their qualification is a direct feeder to the RGA designation – the highest professional designation within public sector finance and auditing.

Personally, though, I have grown and acquired the necessary soft and business abilities to function in dynamic business and accounting environments.

But apart from the best “tea guzzler” award I graciously accepted at our staff year-end function, I have a few proud moments to look back on, the most notable of which was attending the webinar hosted by the International Federation of Accountants (IFAC) themed “Beyond Silence: Understanding the Evolution of Whistleblower Protection Laws from the Accountancy Profession’s Perspective”.

Together with Chartered Professional Accountants of Canada, IFAC convened policymakers and regulators with the accountancy and legal professions for a global event to launch their new report titled “Understanding Whistleblower Protection: Laws, Practices, Trends and Key Implementation Considerations”.

Attended by over 340 live participants from over 130 countries, the webinar provided a platform for experts to discuss the role of whistleblowers and how they can help address some of the most serious issues facing society in various countries. Of course, this was done with great appreciation for varying legislation in different countries.

The report offers evidence-based research and practical perspectives on whistleblower protection legislation. Developed with contributions from the Whistleblowing International Network, it provides professional accountancy organisations, professional accountants, relevant authorities,

and policymakers globally with insights on current issues in adopting and implementing whistleblower protection legislation, and key policy considerations to help ensure that local frameworks are fit for purpose.

The lively discussions reaffirmed the existing gaps between adoption and implementation across the globe and the difficulty of further enhancing whistleblower protection. Whistleblowers still face prosecution, lawsuits and termination.

Naturally, my thoughts gravitated towards things closer to home, and I thought immediately of our Justice Department’s recommendations regarding the major changes to the Witness Protection Act and the Protected Disclosures Act, which are based on the recommendations of the Commission of Inquiry into State Capture to improve whistleblower protection.

The Act is currently being reviewed, with oversight from Justice Minister Ronald Lamola. The review’s objective is to assess South Africa’s current laws regarding protected disclosures and witness protection, searching for flaws in the system and analysing the practices, procedures, and legal framework in addition to the resources available to support whistleblowers.

Similar to Lamola’s initiative, IFAC and CPA Canada’s report comprehensive review explores the positive legislative improvements in whistleblower protection in various jurisdictions and opportunities for further enhancement. The minister expands on this review in one of the articles in this issue.

On the whole, though, is that financial fraud poses a major threat not only to the financial markets but, in the case of South Africa, affects the state’s capacity to provide essential services to its people.

Accountants and auditors, therefore, have an even greater role in the fight against the scourge of corruption because of the unique positions they occupy within organisations.

As J.T. Wells, the founder of the Association of Certified Fraud Examiners, says, when whistleblowers, including internal auditors, feel more empowered, their actions raise “the perception of detection”. And they are likely to have a deterrent effect on those perpetrating fraud.

Here’s hoping for a better year in 2024! 

Kgomotso Sethusha

Editor