A high profile disciplinary committee set up by the Botswana Institute
of Chartered Accountants (BICA) has begun probing and prosecuting
unregistered accountants, with the guilty facing maximum fines of
P500,000 and/or jail terms of up to 10 years.
Led by prominent attorney, Rizwan Desai, the six-member committee is to begin its crackdown on unregistered accountants "within weeks," marking a historic development for the profession in Botswana. Other committee members include leading accountants and executives in the local profession.
The disciplinary body is backed by the new Accountants Act, passed in 2010, which requires all professional accountants to be registered with BICA - which in turn is charged with upholding the highest standards of professionalism in the field.
The Accountants Act also requires BICA registration for "a person holding a designation likely to create the impression that he/she is a professional accountant". Yesterday, BICA CEO, Duncan Majinda, told BusinessWeek the formation of the new disciplinary committee was necessary given the weight of sanctions facing delinquents.
"It's important that we waterproof the disciplinary system or process because, more often than not, you hear that cases have been dismissed because of technicalities," said Majinda who is also a member of the committee.
"There are many cases we are hearing and others that we are in possession of. We want the committee in place because we need to call them and put them through the disciplinary process. "In the next few weeks, some people will be called to book for operating outside the law: 'This is no longer child's play.' Recently, the institute revealed that of the 2,000 accountants operating in government, only 40 were registered, while the private sector is faced with similar challenges.
"We are getting calls from all over the place from people who are reporting that so and so is unregistered," said Majinda. "Our members in Francistown, in particular, are picking people who are not registered and they are notifying us.
"With the committee, we will legally approach these people to say they have not complied with the Act," Majinda said. By registering all accountants, BICA will be able to enforce world-class standards on the profession which are critical for the attraction of foreign direct investment, the enhancement of transparency and accountability and the combating of crime.
The new committee will discipline registered members for various offences under BICA's rules and also lead the prosecution of unregistered accountants for non-compliance with the Act. Majinda explained that the new committee is already ironing out potential loopholes for the effective operation of the disciplinary regime, with grey areas in the Act patched up in the regulations. "In the past, our disciplinary action was limited to our members, but the new Act empowers us to act although we use a different way to call you to book," the CEO said.
"We will issue summons to say you have breached the requirements of the Act and the disciplinary committee will be involved in that prosecution."BICA is presently setting up an appeals committee which the Act requires to be in place for prosecuted accountants to petition. Majinda said in line with the Act, BICA was seeking to appoint a former judge to chair the appeals committee.
"The retired judge will provide a high level of legal expertise without having the interference of day-to-day duties," said the CEO. Legislators powered the new Accountants Act in 2010, arguing that increasing numbers of fly-by-night accountants were swindling clients, providing low quality service and committing other white collar crimes with near impunity.
During the Act's debate, some legislators called for the fine for unregistered accountants to be increased to P1 million, to stamp out corrupt practices and restore public and investor confidence in the profession. BICA members found guilty of flouting its rules are liable to fines, cautions, suspensions and exclusion from the institute, which is essentially a ban from operating in Botswana as a professional accountant. Any firm hiring an excluded accountant will also be reprimanded.
Led by prominent attorney, Rizwan Desai, the six-member committee is to begin its crackdown on unregistered accountants "within weeks," marking a historic development for the profession in Botswana. Other committee members include leading accountants and executives in the local profession.
The disciplinary body is backed by the new Accountants Act, passed in 2010, which requires all professional accountants to be registered with BICA - which in turn is charged with upholding the highest standards of professionalism in the field.
The Accountants Act also requires BICA registration for "a person holding a designation likely to create the impression that he/she is a professional accountant". Yesterday, BICA CEO, Duncan Majinda, told BusinessWeek the formation of the new disciplinary committee was necessary given the weight of sanctions facing delinquents.
"It's important that we waterproof the disciplinary system or process because, more often than not, you hear that cases have been dismissed because of technicalities," said Majinda who is also a member of the committee.
"There are many cases we are hearing and others that we are in possession of. We want the committee in place because we need to call them and put them through the disciplinary process. "In the next few weeks, some people will be called to book for operating outside the law: 'This is no longer child's play.' Recently, the institute revealed that of the 2,000 accountants operating in government, only 40 were registered, while the private sector is faced with similar challenges.
"We are getting calls from all over the place from people who are reporting that so and so is unregistered," said Majinda. "Our members in Francistown, in particular, are picking people who are not registered and they are notifying us.
"With the committee, we will legally approach these people to say they have not complied with the Act," Majinda said. By registering all accountants, BICA will be able to enforce world-class standards on the profession which are critical for the attraction of foreign direct investment, the enhancement of transparency and accountability and the combating of crime.
The new committee will discipline registered members for various offences under BICA's rules and also lead the prosecution of unregistered accountants for non-compliance with the Act. Majinda explained that the new committee is already ironing out potential loopholes for the effective operation of the disciplinary regime, with grey areas in the Act patched up in the regulations. "In the past, our disciplinary action was limited to our members, but the new Act empowers us to act although we use a different way to call you to book," the CEO said.
"We will issue summons to say you have breached the requirements of the Act and the disciplinary committee will be involved in that prosecution."BICA is presently setting up an appeals committee which the Act requires to be in place for prosecuted accountants to petition. Majinda said in line with the Act, BICA was seeking to appoint a former judge to chair the appeals committee.
"The retired judge will provide a high level of legal expertise without having the interference of day-to-day duties," said the CEO. Legislators powered the new Accountants Act in 2010, arguing that increasing numbers of fly-by-night accountants were swindling clients, providing low quality service and committing other white collar crimes with near impunity.
During the Act's debate, some legislators called for the fine for unregistered accountants to be increased to P1 million, to stamp out corrupt practices and restore public and investor confidence in the profession. BICA members found guilty of flouting its rules are liable to fines, cautions, suspensions and exclusion from the institute, which is essentially a ban from operating in Botswana as a professional accountant. Any firm hiring an excluded accountant will also be reprimanded.
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