Newtons

CORRUPTION: THE SCOURGE THAT CAN AFFECT YOUR BUSINESS

 

Anecdotal stories plus growing media focus point to corruption being on the rise.

Have you considered what this can do to your business?

A fourteen country survey of companies by Price Waterhouse Coopers pointed to growing fear of corruption.

What the survey said 

  1. 63% of companies have experienced some form of corruption
  2. 55% say the biggest fallout from corruption is damage to the company’s reputation
  3. 39% have lost a bid due to corruption
  4. 70% think an understanding  of  corruption will enable their business to make better decisions, become more competitive and enter new markets

What is happening locally?

Major legislation has been passed. The Prevention and Combating of Corrupt Activities Act was passed in 2004. Regulation 43 of the new Companies Act, 2008 instructs state owned companies, listed public companies and other companies with a public interest score of more than 500 points in any two of the past five years (i.e. medium to large companies) to set up Social and Ethics Committees. Part of this committee’s mandate is to implement the Organisation for Economic Co-operation and Development’s (OECD) anti-corruption guidelines.  These guidelines require implementing controls to prevent corruption.

Where does that leave you?  

It makes sense to, at least:

  • Review your customers and suppliers and categorise them by risk of potential corrupt dealings.
  • Audit your controls over procurement
  • Impress on your staff and stakeholders that corruption is not acceptable in your business
You have no more valuable asset than your reputation – take steps to protect it!
© CA(SA)DotNews is a general information sheet and should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your financial adviser for specific and detailed advice.

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IC Marais

Professional experience:

IC Marais is a certified CA (SA) with public sector and private sector technical knowledge based on 5 years’ Public Sector accounting, auditing and financial management experience and 5 years audit, tax and accounting experience. Detailed knowledge of private and public sector accounting and auditing standards (GRAP, IPSAS, IFRS, IAS, ISA) and public sector financial legislation (MFMA, etc.)

He enjoys the outdoors, hunting and fishing.

ic@newtons-sa.co.za

SCHALK GOUWS

Professional experience:

In 1995, Schalk started as a trainee at Warner and Newton (which became Moores Rowland in 1997 and then Mazars Moores Rowland in 2007) in Bloemfontein. In 1998, Schalk was appointed as manager at Moores Rowland, where he became a partner in 2003. Schalk received his Postgraduate Certificate in Advanced Taxation in 2006 and in 2009 he received his Certificate in the Administration of Estates.

schalk@newtons-sa.co.za

CEDRIC PETERSON

Professional experience:

Cedric started as a trainee at Warner and Newton (which became Moores Rowland in 1997 and Mazars Moores Rowland in 2007), Bloemfontein, in 1986. After completion of his articles, he joined the Special Investigations Division of the Department of Finance (SA Revenue Services) as a senior inspector from 1990 to 1991.

cedric@newtons-sa.co.za

LUCHA GREYLING

Professional experience:

Lucha started her career as a tax inspector at the Inland Revenue Department of New Zealand. After this she worked in commerce in Canada, Mexico and the United States.

On her return to South Africa, she completed her CA training contract with us and has been with Newtons ever since. She became a Partner in 2012.

Apart from her CA(SA) qualification she also holds a postgraduate certificate in Advanced Taxation (2005) and has the overall responsibility for training as our Training Officer.

lucha@newtons-sa.co.za