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15 February 2022 | Story Prof Sethulego Matebesi
Prof Sethulego Matebesi
Prof Sethulego Matebesi, University of the Free State

Long before delivering his fifth State of the Nation Address (Sona), concerns reverberated in the political and social corridors surrounding President Cyril Ramaphosa, urging him to make conclusive statements, to have the heads roll of those implicated in corruption, and to report on achievements and challenges. However, the somewhat overwhelming dismissive responses from prominent opposition party leaders may seem as if they are not eager to engage with the Sona constructively. Thus, it seems that no matter how well the Sona is delivered, there will always be those who dismiss it as a trivialisation of South Africa’s challenges.

There were times during one or two of the ‘family meetings’ – live broadcasts by the President, addressing the nation on the status of the COVID-19 pandemic and the regulations to be amended – that it was vividly evident that Ramaphosa was taking strain. However, all this was gone when President Ramaphosa delivered the Sona like a true statesman, without any visible signs of the ambush he was facing from within and outside his own political party. In fact, the need to be bold and resolute about the government’s stability has never been stronger after recent attacks on several national key points across the country.

Assumed power of reports from commissions, advisory panels, and advisory councils

In a recent Reading Group Session of the Department of Sociology, we discussed the assumed power of documents when conducting research. The emphasis was on the need to avoid an over-zealous reduction of a research question to documentary evidence without considering the document’s terms (or context). Similarly, it is interesting to note that since 2018, President Ramaphosa has established 24 advisory panels, advisory councils, task committees, and commissions. While it may seem rather obvious that some of these panels have been designated by statute for a specific purpose, the assumed powers of the reports produced are sometimes the most difficult to unravel.

One such instance is the report of the Zondo Commission of Inquiry into State Capture, which was viewed as a magic wand that would root out corruption and strengthen the rule of law. In the face of the complex set of interlocking challenges that are hampering structural growth and change in South Africa, reports from committees may provide an in-depth examination of issues. However, there are at least two problems with policy makers who invariably think that these reports, including national addresses such as Sona, are solutions to the country’s myriad challenges.

First, a recent publication of Transparency International highlights how some governments are trivialising the results of its Corruption Perceptions Index (CPI). The trivialisation mainly happens when leaders who have come into office with a strong anti-corruption narrative, fail to make inroads against this scourge. For example, in South Africa, pronouncements on corruption – one of the leading causes of the state’s failure to deliver on promises – have been so subtle that those involved in corrupt practices may not even notice the seriousness of their acts.

The other problem is the reluctance to change non-performing accounting systems that are susceptible to abuse. South Africa has been trying to fix the puzzle of corruption long before the arrival of the Zondo Commission. Therefore, acknowledging that public institutions and state-owned enterprises (SOEs) have been infiltrated by a criminal network intent on looting public money is merely a starting point but not a satisfactory explanation in its own right. Moreover, it does not account for the government’s glaring failure to act upon the Auditor-General’s annual findings on irregular and unaccounted expenditure. It would have been more desirable for the government to insist on better financial accountability than its over-reliance on commissions or advisory panels.

As the nation waits with bated breath to see how corruption is tackled ‘once and for all’, as the President announced, a further qualification needs to be made regarding the proposed disposal of the government’s non-strategic SOEs. Estimates of global trends in privatisation indicate that privatisation activities are on the rise. In South Africa, there is a great deal of evidence that a handful of politically connected individuals often benefit from the privatisation of government assets. This raises important questions that are beyond the scope of this contribution, for example, how SOEs will be further weakened to hasten the process of privatisation.

Victorious we can emerge, but only if …

President Ramaphosa made a bold statement through his promise and commitment to revitalise the country’s weak economy, deal with Eskom’s unreliable electrical supply, and bring about changes to security agencies, among others. The extent, urgency, and sincerity with which the government will implement these and many other commitments, will determine whether we will ‘emerge victorious’, as Ramaphosa announced.

Mr President, we know the road ahead will not be easy. But in many ways, there has been an improvement. One possible solution to continue this trajectory of accountability and improved service delivery is to take full advantage of the benefits of the digital age. A digitisation drive underscored by a consequence management approach may assist in implementing the Sona promises and commitments in a more efficient, flexible, and sustainable manner. In this way, South Africa will begin to ‘walk the talk’ against poverty, unemployment, and inequality.


News Archive

Number of PhD graduates a record for School of Accountancy
2017-06-27

Description: School of Accountancy PhDs Tags: School of Accountancy PhDs

From left to right: Dr Stiaan Lamprecht,
Dr Cornelie Crous, Prof Hentie van Wyk
(Programme Director: School of Accountancy),
Prof Francis Pietersen (Rector and Vice-Chancellor),
Prof Dave Lubbe (Research Fellow: School of Accountancy),
Dr Léandi Steenkamp and Dr Louis Smidt.
Photo: Charl Devenish

This year’s mid-year graduation ceremony for master’s and doctoral degrees saw the School of Accountancy honouring four alumni with PhDs in Accounting on 26 June 2017 at the Callie Human – a record for the School of Accountancy.

Professor Hentie van Wyk, Programme Director of the School of Accountancy and promoter of one of the doctoral degrees, says, “Over the past three to four decades before 2017, no more than five doctoral degrees were awarded by the School of Accountancy.”

Dr Cornelie Crous, Dr Léandi Steenkamp, and Dr Louis Smidt received their doctoral degrees with specialisation in Auditing, and Dr Stiaan Lamprecht with specialisation in Accounting.

PhD candidates’ thesis and personal profiles
Dr Crous, who was born in Bloemfontein on 30 June 1979, is currently working in the School of Accountancy as a Senior Lecturer in Auditing. Her thesis, which is titled ‘Corporate Governance in South African Higher Education Institutions’, influences the application of corporate governance principles in higher-education institutions. It provides a thorough breakdown of the application and disclosure of the application of corporate governance principles in terms of both South African and international best practices in publicly-funded universities in the country.

Dr Lamprecht’s thesis, ‘A Financial Reporting Framework for South African Listed Companies under Business Rescue’, contributes innovative knowledge and insights to the existing body of knowledge on financial reporting.  According to his study, with reference to a listed company under business rescue, there is a need for an underlying financial reporting assumption that varies from the recognised going concern and liquidation assumptions. Users of the financial statements of such a company also require an accounting measurement model based on current values, as opposed to the mixed-measurements accounting model employed at present.

Dr Smidt completed both his master’s and PhD degrees at the UFS. This father of two sons is currently a lecturer at the Tshwane University of Technology. His thesis, ‘A Maturity Level Assessment on the use of Generalised Audit Software by Internal Audit Functions in the South African Banking Industry’, has already started to contribute to the internal audit profession in South Africa and globally.  Due to its existing extension to internal audit functions in various industries in Canada, Columbia, Portugal, and Australia, the value has been enhanced, as it now provides an internationally correlated set of results.

Dr Steenkamp, who completed her Magister in Auditing with a distinction at the UFS in 2013, is a qualified Chartered Accountant (CA (SA)), Certified Internal Auditor (CIA), Certified Information Systems Auditor (CISA), Professional Accountant (SA), and member of all the professional bodies. Her thesis, ‘The Sectional Title Industry in South Africa: Enhancing Accounting and Auditing Practices’, makes a significant impact on the sectional title industry and the accounting profession in South Africa. The literature review gave an in-depth overview of risks associated with sectional title for various stakeholders (i.e. owners, trustees, managing agents, auditors and accountants, and EAAB-appointed inspectors).

“Indeed a special day for the School of Accountancy!” says an ecstatic Prof Van Wyk. Professor Dave Lubbe, Research Fellow in the School of Accountancy, was the promoter for three of the four doctoral degrees.

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