Mandi Olivier. Picture: FINANCIAL MAIL
Mandi Olivier. Picture: FINANCIAL MAIL

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THE South African Institute of Chartered Accountants (Saica) will on Friday release the results of last year’s professional competence assessments amid a brewing race row over a cheating scandal that will see some candidates’ outcomes withheld.

PwC dismissed 11 trainee accountants after they were allegedly caught up in the cheating scandal that has rocked some of the country’s top auditing firms.

The blow-up has seen the Tshwane division of the Association for the Advancement of Black Accountants (Abasa) accusing PwC of racism for targeting only black candidates, with the group approaching the higher education minister to intervene.

In November, candidates wrote the professional competence and qualifying examinations, which pave the way for Saica registration.

However, irregularities were detected with the professional competence assessments when two trainees at PwC’s Port Elizabeth and East London offices distributed confidential client information to colleagues during preparations for the exams. The information quickly spread to other firms including KPMG and EY.

"A small number of candidates’ results are being withheld and it is not appropriate for us to comment about the investigation at this time as this process is still under way," said senior executive for professional development at Saica, Mandi Olivier.

"Maintaining client confidentiality is a value that PwC holds dear. We will act swiftly and firmly if this is compromised in any way," PwC chief operating officer Fulvio Tonelli said.

Bonolo Ramokhele, a member of the Tshwane division of Abasa, said while the association did not condone the unethical conduct of the candidates, there appeared to be unfair treatment among those implicated as well as loopholes in Saica’s probe into the scandal.

"Although non-African trainees committed similar indiscretions of disseminating the client information, they only got written warnings while their black counterparts were fired within PwC," Mr Ramokhele said.

The Tshwane division of Abasa had approached the minister of higher education and called for a meeting with Saica and the CEOs of the affected firms to make sure the profession’s integrity was not compromised and that all implicated parties were treated fairly, Mr Ramokhele said.

Saica had asked candidates to submit sworn affidavits voluntarily, in which they admitted to their involvement in passing on the confidential information. Mr Ramokhele said this served as a loophole.

"This is a pervasive issue that has touched the entire profession. It (submitting voluntary sworn affidavits) will be a subjective exercise, as the people who committed the lesser evil are going to walk and those who committed the greater evil will not become chartered accountants," he said.

The accounting firms were mum on the number of trainee candidates involved, but said they were confident their engagement with Saica would yield a positive outcome.

KPMG CEO in SA Trevor Hoole said: "We are working with Saica and any questions on the matter should be referred to Saica."

EY said the issue was between Saica and the candidates.

"We have engaged Saica and have full confidence in their resolution process," the company said.

Abasa president Gugu Sigasa said: “We note the importance of the results to all parties concerned, especially the candidates receiving them, thus any likelihood that there could be any question around these needed to be cleared as much as possible so as not to have adverse implications in the long run.

"Abasa will continue to monitor the investigations undertaken by the firms … and that any indications of unfair treatment is appropriately addressed. We currently await an indication of the demographics of those subject to investigation from Saica. Abasa is committed to sound principles of good governance and economic transformation."