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LEGAL
Telephone: (087) 940-8800
Fax: (087) 940-8873
E-mail:
legal@irba.co.zaDISCIPLINARY COMMITTEE
The Disciplinary Committee sat three times during the period to
hear two matters, both of which were part-heard matters that had
commenced previously. These matters were not finalised and will
continue in 2019.
Reportable Irregularities
Reportable Irregularities (RIs) for the quarter July-September 2018
(Note that RIs are reported on quarterly in arrears)
268 second reports were received, of which:
-- RIs were continuing
125
-- RIs were not continuing
140
-- RIs did not exist
3
Of the 125 continuing RIs received, the top six types of RIs most
frequently reported, categorised by nature were:
(Note that in many cases, a second report received would identify
more than one RI)
Unlawful Act or Ommission
Reporting Frequency Regulator(s) Informed
-- Tax and VAT-related contraventions, e.g. non-submission of
tax returns, failure to register for tax, non-payment of PAYE,
etc.
25.97%
The South African Revenue Service (SARS).
-- Financial statements not prepared/not approved within the
alloted timeframe.
21.55%
SARS, the Financial Sector Conduct Authority
and the Companies and Intellectual Property
Commission (CIPC).
-- Various Companies Act Contraventions, e.g. reckless
trading, breach of directors’ fiduciary duties, irregular financial
assistance to directors, AGM-related irregularities, etc.
15.47%
The CIPC.
-- Contravention of the Estate Agency Affairs Act, e.g. trading
without a valid fidelity fund certificate, etc.
14.36%
The Estate Agency Affairs Board.
-- Suspected fraud and/or theft, and contravention of the
Prevention and Combatting of Corrupt Activities Act.
3.87%
The Directorate for Priority Crime Investigation,
the Financial Intelligence Centre, etc.
-- Contraventions of the Public Finance Management Act.
1.66%
The Departrment of Public Enterprises, National
Treasury, the Auditor-General, etc.
-- Other, e.g. contraventions of the Johannesburg Stock
Exchange Listing Requirements, the National Credit Act, the
Sectional Title Schemes Management Act, etc.
17.12%
The Johannesburg Stock Exchange, the
National Credit Regulator, the Community
Schemes Ombud Service, etc.
Holding Out
In February 2017, the Special Investigating Unit (SIU) requested that
the IRBA should provide an affidavit as to whether an individual
was registered with the regulator. The request related to an
investigation regarding the granting of membership to contractors
by the Construction Industry Development Board (CIBD). The
application for membership to the CIBD required a submission of
the contractor’s audited annual financial statements.
The individual in question with regards to the query from the SIU was
a registered auditor until his resignation in April 2009. It appeared
that the individual had prepared a set of the contractor’s “audited
annual financial statements” after his resignation from the IRBA, and
this was submitted to the CIBD. An affidavit was duly prepared and
submitted to the SIU confirming this.
In November 2018, Caroline Garbutt, Manager: Registrations, was
served with a subpoena to attend and testify at a disciplinary hearing
instituted by the CIBD against the contractor on 21 November 2018.
At the hearing the contractor admitted guilt thereby curtailing the
proceedings and Ms Garbutt was excused from testifying.
The IRBA did not pursue any action against the registered auditor
since he had passed away in 2010.
Issue 44 | October-December 2018
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