BAOA keeps close eye on beleaguered KPMG
The Botswana Accountancy Oversight Authority (BAOA) continues to monitor the South Africa situation involving auditing giant, KPMG, with keen interest following a well-publicised saga involving Gupta Group of Companies.
BAOA Chief Executive Officer (CEO), Duncan Majinda told this publication this week that there are notable occurrences including some key KPMG clients having migrated away from the KPMG client portfolio. “These included the South African Auditor General, in addition there are allegations of a possible loss of 400 jobs,” Majinda said.
“While the problem is localised in South Africa, there is a concern that global network could also be affected. Botswana is concerned that worst-case may reflect KPMG’s going concern status being threatened, potentially with a significant impact upon the country’s auditing landscape as KPMG audits about 70 percent of the commercial banks in Botswana.” Majinda indicated that another concern is that under normal circumstances, standard international practice has established the Mandatory Audit Firm Rotation which is now in progress in South African and other parts of the world.
“Under the circumstances, the KPMG situation could compromise the audit rotation and other aspects across all firms in Botswana, particularly that some decisions are taken at global firm level,” argued Majinda. The investigations in South Africa on the KPMG saga are still ongoing from various investigating authorities including the South African Audit Regulator, and Independent Regulator Board of Auditors (IRBA).
The results are expected in late November to December 2018 according to BAOA supremo. “Pending the outcome of the investigations, the Authorities in Botswana will rely on undertakings by the global firm which has instituted a regime of clinical internal control protocols at firm level,” he said. “These monitoring control ecosystems are aimed at the review strengthening of controls and governance frame works within the firm along the lines of King IV. We believe a set of remedial actions by the global firm have been introduced in the area of the audit quality control.”
PERFORMANCE OF LOCAL AUDITORS
BAOA has a broad mandate as an independent regulator of the accounting and auditing profession in Botswana and oversees among others; the auditors and audits firms; professional bodies like BICA, ACCA, CIMA; financial reporting of public interest entities and their corporate governance and, standards setting of auditing, financial reporting, accounting education and code of ethics. “In essence, the Authority has an across the board and the overall oversight of the entire accountancy profession in the country,” said Majinda.
“Our main interest is audit quality and the compliance with international standards on auditing and that the assurance they give on financial statements is credible and appropriate.” According the BAOA CEO, in summary, 70 percent of the auditors largely meet the required auditing standards while 30 percent require some improvement in their quality.
Majinda noted that auditors and audit firms that do not meet the expected standards lose their practising licenses, indicating that so far, three sole practitioners have lost their practising certificates since the Authority started its reviews in 2013. Interestingly, Majinda observed following an introduction of a new area in the mandate of the institution, regarding corporate governance and financial reporting monitoring, it has merged that private and listed companies, and banks perform significantly better than state-owned enterprises
DIFFERENTIAL PERFORMANCES BETWEEN PRIVATE AND PUBLIC SECTOR
According to Majinda, poorly constituted boards without requisite balance of knowledge, skills and expertise are the main problems of poorly performing entities. “The engine of a car is the most important component of the car without which it cannot operate. By the same token, in an organisation, the Board and executive management is the engine of the entity,” he argued.
“Private and listed companies have very strong boards constituted along best international practice through corporate governance codes like King III and King IV. Parastatals on the other hand are dominated by pre-determined ex-officio appointments so that if there is such a balance, it is by coincidence rather than design.” Majinda said committees such as Remuneration, Nominations, Risk are not common with parastatals.
He however said, other determining factor maybe the fact that these public institutions have different mandates, as some are commercially oriented while others are geared towards providing a public good or service where commercial initiatives are constrained through, for example, controlled prices and levies. “That notwithstanding, good corporate governance can be applied right across industries and sectors, public or private, profit making or non-profit making, to ensure efficiency, effectiveness and economy in doing business,” he insisted.
Majinda stated that entities that fall short of expected standards may end up losing their practising certificate. “For other entities the law provides for heavy penalties and the regulator can also report them to their corresponding regulators and shareholders,” he said. BAOA recently signed a Memorandum of Understanding (MoU) with Public Enterprises Evaluations and Privatisation Agency (PEEPA) and together they will agree a coordinated way of instituting performances monitoring and compliance controls.
Majinda said, as President Mokgweetsi Masisi and Minister of Finance and Economic Development indicated their expectation of BAOA in the inauguration speech and budget speech respectively, it is in the interest of the public public for the state-owned entities to perform to expected standards and achieve the objectives for which they were established. “The other expectation is that of proper accountability so that the true figure of taxes due to government are declared and paid. The expectations are, therefore, legitimate and subject to the availability of resources to implement them, the profession should react accordingly,” he said.
ON HAVING TOO MANY REGULATORS
There is believe that Botswana have too many regulators such that they end up of cancelling each other’s work therefore creating a duplication. Majinda however does not believe this is necessarily true, indicating that the occurrence is bound to happen where an institution is regulated by various regulators. Majind said, an example can be a listed bank with an insurance arm for its loan book and a pension fund.
“Since the bank is listed, the BSE will regulate it to ensure that it complies with listings requirent; the Bank of Botswana will regulate it to ensure compliance with the banks’s prudential requirement; NBFIRA will regulate its insurance and pension business and BAOA will regulate it to ensure compliance with financial reporting, auditing and corporate governance,” he argued. “By the virtue of its presence in all these sectors, this bank could find itself being subject to regulation by four different regulators.”
Majinda contended that while there is a potential albeit limited overlap in the regulators’ mandates, albeit in a limited number of cases, the regulators have signed MoUs to buttress the potential duplication effort.“The allegations of multiple regulation are by those entities that are active in many different sectors and therefore do not want regulation by many regulators, however, it is not possible for one regulator to take care of all these difference business segments.,” he said.
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19 Bokamoso Private Hospital nurses graduate at Lenmed Nursing College
The graduation of 19 nurses from Bokamoso Private Hospital at Lenmed Nursing College marks a significant milestone in their careers. These nurses have successfully completed various short learning programs, including Adult Intensive Care Unit, Emergency Nursing Care, Anaesthetic & Recovery Room Nursing, Anaesthetic Nursing, and Recovery Room Nursing. The ceremony, held in Gaborone, was a testament to their hard work and dedication.
Lenmed Nursing College, a renowned healthcare group with a presence in South Africa, Botswana, Mozambique, and Ghana, has been instrumental in providing quality education and training to healthcare professionals. The Group Head of Operations, Jayesh Parshotam, emphasized the importance of upskilling nurses, who are at the forefront of healthcare systems. He also expressed his appreciation for the partnerships with Bokamoso Private Hospital, the Ministry of Health, and various health training institutes in Botswana.
Dr. Morrison Sinvula, a consultant from the Ministry of Health, commended Lenmed Health and Lenmed Nursing College for their commitment to the education and training of these exceptional nurses. He acknowledged their guidance, mentorship, and support in shaping the nurses’ careers and ensuring their success. Dr. Sinvula also reminded the graduates that education does not end here, as the field of healthcare is constantly evolving. He encouraged them to remain committed to lifelong learning and professional development, embracing new technologies and staying updated with the latest medical advancements.
Dr. Gontle Moleele, the Superintendent of Bokamoso Private Hospital, expressed her excitement and pride in the graduating class of 2023. She acknowledged the sacrifices made by these individuals, who have families and responsibilities, to ensure their graduation. Dr. Moleele also thanked Lenmed Nursing College for providing this opportunity to the hospital’s nurses, as it will contribute to the growth of the hospital.
The certificate recipients from Bokamoso Private Hospital were recognized for their outstanding achievements in their respective programs. Those who received the Cum Laude distinction in the Adult Intensive Care Unit program were Elton Keatlholwetse, Lebogang Kgokgonyane, Galaletsang Melamu, Pinkie Mokgosi, Ofentse Seboletswe, Gorata Basupi, Bareng Mosala, and Justice Senyarelo. In the Emergency Nursing Care program, Atlanang Moilwa, Bakwena Moilwa, Nathan Nhiwathiwa, Mogakolodi Lesarwe, Modisaotsile Thomas, and Lorato Matenje received the Cum Laude distinction. Kelebogile Dubula and Gaolatlhe Sentshwaraganye achieved Cum Laude in the Anaesthetic & Recovery Room Nursing program, while Keletso Basele excelled in the Anaesthetic Nursing program. Mompoloki Mokwaledi received recognition for completing the Recovery Room Nursing program.
In conclusion, the graduation of these 19 nurses from Bokamoso Private Hospital at Lenmed Nursing College is a testament to their dedication and commitment to their profession. They have successfully completed various short learning programs, equipping them with the necessary skills and knowledge to excel in their respective fields. The collaboration between Lenmed Nursing College, Bokamoso Private Hospital, and the Ministry of Health has played a crucial role in their success. As they embark on their careers, these nurses are encouraged to continue their professional development and embrace new advancements in healthcare.
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BNF secures 15 constituencies in UDC coalition, wants more
The Botswana National Front (BNF) has recently announced that they have already secured 15 constituencies in the Umbrella for Democratic Change (UDC) coalition, despite ongoing negotiations. This revelation comes as the BNF expresses its dissatisfaction with the current government and its leadership.
The UDC, which is comprised of the BNF, Botswana Peoples Party (BPP), Alliance for Progressives (AP), and Botswana Patriotic Front (BPF), is preparing for the upcoming General Elections. However, the negotiations to allocate constituencies among the involved parties are still underway. Despite this, the BNF Chairman, Patrick Molotsi, confidently stated that they have already acquired 15 constituencies and are expecting to add more to their tally.
Molotsi’s statement reflects the BNF’s long-standing presence in many constituencies across Botswana. With a strong foothold in these areas, it is only natural for the BNF to seek an increase in the number of constituencies they represent. This move not only strengthens their position within the UDC coalition but also demonstrates their commitment to serving the interests of the people.
In a press conference, BNF Secretary General, Ketlhafile Motshegwa, expressed his discontent with the current government leadership. He criticized the ruling Botswana Democratic Party (BDP) for what he perceives as a disregard for the well-being of the Batswana people. Motshegwa highlighted issues such as high unemployment rates and shortages of essential medicines as evidence of the government’s failure to address the needs of its citizens.
The BNF’s dissatisfaction with the current government is a reflection of the growing discontent among the population. The Batswana people are increasingly frustrated with the lack of progress and the failure to address pressing issues. The BNF’s assertion that the government is playing with the lives of its citizens resonates with many who feel neglected and unheard.
The BNF’s acquisition of 15 constituencies, even before the negotiations have concluded, is a testament to their popularity and support among the people. It is a clear indication that the Batswana people are ready for change and are looking to the BNF to provide the leadership they desire.
As the negotiations continue, it is crucial for all parties involved to prioritize the interests of the people. The allocation of constituencies should be done in a fair and transparent manner, ensuring that the voices of all citizens are represented. The BNF’s success in securing constituencies should serve as a reminder to the other parties of the need to listen to the concerns and aspirations of the people they aim to represent.
In conclusion, the BNF’s acquisition of 15 constituencies, despite ongoing negotiations, highlights their strong presence and support among the Batswana people. Their dissatisfaction with the current government leadership reflects the growing discontent in the country. As the UDC coalition prepares for the upcoming General Elections, it is crucial for all parties to prioritize the needs and aspirations of the people. The BNF’s success should serve as a reminder of the importance of listening to the voices of the citizens and working towards a better future for Botswana.
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Children’s summit to discuss funding of NGOS
One of the key issues that will be discussed by the Childrens’ Summit, which will be hosted by Childline Botswana Trust on 28th – 30th November in Gaborone, will be the topical issue of financing and strengthening of civil society organizations.
A statement from Childline Botswana indicates that the summit will adopt a road map for resourcing the children’s agenda by funding organizations. It will also cover issues relating to child welfare and protection; aimed at mobilizing governments to further strengthen Child Helplines; as well as sharing of emerging technologies to enhance the protection of Children and promotion of their rights.
According to Gaone Chepete, Communications Officer at Childline Botswana, the overall objective of the summit is to provide a platform for dialogue and engagement towards promoting practices and policies that fulfil children’s rights and welfare.
“Child Helplines in the region meet on a bi-annual basis to reflect on the state of children; evaluate their contribution and share experiences and best practice in the provision of services for children,” said Chepete.
The financing of non-governmental organizations (NGOs) by the state or its functionaries has generated mixed reactions from within the civil society space, with many arguing that it threatened NGOs activism and operational independence.
In February 2019, University of Botswana academic Kenneth Dipholo released a paper titled “State philanthropy: The demise of charitable organizations in Botswana,” in which he faulted then President Lieutenant General Seretse Khama Ian Khama for using charity for political convenience and annexing the operational space of NGOs.
“Civil society is the domain in which individuals can exercise their rights as citizens and set limits to the power of the state. The state should be developing capable voluntary organizations rather than emaciating or colonizing them by usurping their space,” argued Dipholo.
He further argued that direct involvement of the state or state president in charity breeds unhealthy competition between the state itself and other organizations involved in charity. Under these circumstances, he added, the state will use charity work to remain relevant to the ordinary people and enhance its visibility at the expense of NGOs.
“A consequence of this arrangement is that charitable organizations will become affiliates of the state. This stifles innovation in the sense that it narrows the ability of charitable organizations to think outside the box. It also promotes mono-culturalism, as the state could support only charitable organizations that abide by its wishes,” said Dipholo.
In conclusion, Dipholo urged the state to focus on supporting NGOs so that they operate in a system that combines philanthropic work and state welfare programs.
He added that state philanthropy threatens to relegate and render charitable organizations virtually irrelevant and redundant unless they re-engineer themselves.
Another University of Botswana (UB) academic, Professor Zibani Maundeni, opined that politics vitally shape civil society interaction; as seen in the interactions between the two, where there is mutual criticism in each other’s presence.
Over the years, NGOs have found themselves grappling with dwindling financial resources as donors ran out of money in the face of increased competition for financing. Many NGOs have also been faulted for poorly managing their finances because of limited strategic planning and financial management expertise. This drove NGOs to look to government for funding; which fundamentally altered the relationships between the two. The end result was a complete change in the operational culture of NGOs, which diminished their social impact and made them even more fragile. Increased government control through contract clauses also reduced NGOs activism and autonomy.
However, others believe that NGOs and government need each other, especially in the provision of essential services like child welfare and protection. Speaking at the Civil Society Child Rights Convention in 2020, Assistant Minister of Local Government and Rural Development Setlhabelo Modukanele said government considers NGOs as critical partners in development.
“We recognize the role that NGOs play a critical role in the country’s development agenda,” said Modukanele.