African Bank Deloitte final arguments set for June

Johannesburg, Tuesday, May 5, 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 this week 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 Independent Regulatory Board for Auditors (IRBA) is hopeful that, with the easing of lockdown restrictions, the matter will go ahead in June. It took two years for the IRBA to complete the investigation and another nine months to bring it to hearing, which commenced in March 2018. Since then more than 50 days were set down to hear the matter in its entirety. 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 efforts to contain the lockdown and preparations are underway to reopen the IRBA in accordance with restrictions on social distancing, and unless there is a further easing of restrictions, only the necessary number of representatives of the legal teams and required staff members will be present for final arguments. Even in these challenging times, it is necessary for regulators to fulfil their oversight roles and the IRBA will take every precaution to safeguard the health and safety of all participants.”

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.