African Bank / Deloitte final arguments will proceed in June

Johannesburg, Friday, May 29, 2020 – The final heads of argument in the disciplinary matter against two Deloitte partners for the audits of the failed African Bank, which would have been heard at the end of May but which were postponed due to social distancing and lockdown requirements as a result of the COVID-19 outbreak, have been confirmed for June 8 and 9.

The arguments will be heard via video conferencing in order to ensure that the hearing proceeds and will not be impacted by any further changes in the level of lockdown. The Independent Regulatory Board for Auditors (IRBA) is cognisant of the need for this matter to reach a final conclusion as soon as possible. These closing arguments will precede the release of the disciplinary hearing panel’s findings on the matter which consists of ten charges.

Says Bernard Agulhas, CEO of IRBA: “The IRBA has been supportive of government’s lockdown efforts to contain community transmissions which unfortunately led to the earlier postponement of the May hearing dates. Given that under level three the IRBA has opted not to physically open the office facility, preparations are now final to proceed on the matter using remote conference technology. We have been successfully conducting statutory committee meetings and large team meetings for the last eight weeks and we are confident in the reliability of the platform. Given these challenging times, it is necessary to adapt our way of working to continue to fulfil the IRBA mandate in the public interest.”

The panel is expected to release its findings within 30 days of the final arguments in accordance with Section 51 (1) of the Auditing Profession Act 26 of 2005. In the event that there is a finding of improper conduct against the auditors there will a hearing for sentencing and imposition of sanctions.

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More about the IRBA:

The IRBA is a public protection statutory body established to protect the financial interests of the public by ensuring registered auditors and their firms deliver services of the highest quality. It upholds audit firm independence to ensure that audit quality is such that it enhances the accuracy and credibility of financial performance reporting. In this way, the IRBA has an important role to play in building the reputation of South Africa as an investment market for both local and global investors and driving economic growth for the country.

The IRBA also registers suitably qualified accountants as auditors, who must adhere to the highest ethics standards, and promotes the auditing profession through the effective regulation of assurance conducted in accordance with internationally recognised standards and processes.