Mr Jeff Dlamini, ABASA KZN Chairman,
Ms Zama Myeni, ABASA KZN Vice Chairman,
Ms Gugu Mtetwa, ABASA National Secretary,
Mr Brendan Stewart, Investec Specialist Bank - Head of Durban Region,
Mr Craig Sugden, Investec Specialist Bank – Banking Head Durban Region,
Mr Naeem Asvat, SAICA Regional Executive Eastern Region,
Mr Bugs Puncha, SAIPA KZN Region Chairperson.
Taking Kwazulu-Natal (KZN) to new heights
Tonight we are not only celebrating the achievements of 155 brand-new KZN Chartered Accountants and Professional Accountants, but we are also toasting to the progress made by black candidates in the chartered accountancy profession.
With at least 68% of the candidates who passed the 2011 Qualifying Part Two QEII in the Financial Management Stream being black, we are certainly moving in the right direction. According to the South African Institute of Chartered Accountants (SAICA) there has been a significant increase in the number of black chartered accountants (CA) entering the South African CA (SA) pipeline. The pass rate among African candidates has improved significantly from 49% to 77% between 2009 and 2011.
Three black candidates are also among the top ten.
The South Africa Institute of Professional Accountants (SAIPA) has also reported a substantial increase in the number of black candidates doing internships and passing SAIPA’s Professional Evaluation Examination.
Pioneers in accounting
These achievements pave the way for other aspiring black CAs and professional accountants in our Province and our Country. You are truly like pioneer plants. Pioneer species are typically very hardy plants, which adapt to overcome obstacles such as poor quality soil, drought, etc. They also provide shade for less hardy plants.
We need trailblasers to inspire our youth and show them that persistence and perseverance can pay off; that one can overcome difficult circumstances to achieve one’s dreams.The supportive role of ABASA in the training, facilitation, encouragement and recognition of the potential of black candidates is to be lauded. Thank you to The Association for the Advancement of Black Accountants of Southern Africa (ABASA) for your helping hand. We also acknowledge the contribution of SAICA, SAIPA and other partners in growing the profession. It takes time and energy to rear skilled, qualified CAs and certified professional accountants.
South Africa (SA) accounting as a pioneer
As a profession South African accounting has also been a pioneer. It enjoys high international recognition for the strength of the profession’s financial auditing and reporting standards. South Africa’s persistent emphasis on high standards of accounting education and practical training led to the formulation of South Africa’s Generally Accepted Accounting Principles (GAAP), now called GRAP (Generally Recognised Accounting Practice), of a sufficiently compliant standard. This has resulted in a smooth implementation of international reporting standards.
This competence is a comforting thought for South African businesses and financial institutions, as well as investors.
The number of CAs in South Africa has more than doubled in the 20 years between 1990 and 2010. But we are also very much aware of the accounting skills shortage in our Province and country. Some labour experts pose it as a challenge, as well as an opportunity for growth.
Accounting can really be a catalyst for change, not only on the public sector but also in the SMME sector. I am excited to hear that accounting as a catalyst is also the conference theme for the SAIPA National Conference in July this year.
Accounting has evolved
We have come a long way since the first Mesopotamian and Egyptian “accountants” wrote transactions with a wooden rod on moist clay tablets or papyrus sheets. The Egyptian bookkeepers associated with each storehouse kept meticulous records, which were checked by an elaborate internal verification system. These early accountants had good reason to be honest and accurate. Irregularities disclosed by royal audits were punishable by fine, mutilation or even death.
Accounting has since developed into an integral component of modern organisational and social management. It plays an influential role in all institutional layers of society and at the same time accounting information has become part of the global knowledge explosion. This has sparked off a growing demand for financial information, disclosure of financial information and transparency of transactions.
Accounting and growth and development
Accounting today also helps the government in developing a basis for taxation and facilitates more general economic management of policies to help economic growth and social well-being.
We need to pull out all stops in our Province and our Country if we were to address the triple challenges of poverty, unemployment and inequality, which President Mr Jacob Zuma and Premier Dr Zweli Mkhize referred to in their State of the Nation and State of the Province respectively.
The tone in KwaZulu-Natal is upbeat. Like the entrepreneur Fred Adler said “happiness is a positive cash flow.” With no overdraft to pay, the Province had R3.6 billion in cash in the bank at the end of last year.
Like any good business we budgeted for a contingency reserve, which has become a norm over the recent years. This will not be used to bail-out poor budget management in departments.
The key responsibility of Provincial Treasury to manage a provincial budget of R83.572 billion for the 2012/13 financial year, increasing to R95.700 billion in 2014/15. But chartered accountants are a scare species and suitably qualified people are needed on board. We need the expertise of competent people to work in Treasury and to serve in Boards or the Audit Committees of our public entities and municipalities. Therefore I urge you to apply when these positions are advertised.
The Provincial Treasury also partnered with the private sector in establishing the KZN Financial Literacy Association. To date the Association has more than 70 participating entities, ranging from private sector entities (accounting firms, financial institutions,etc,) parastatals, regulatory bodies, academic institutions as well as government departments. Membership is voluntarily and organisations, such as ABASA, SAICA and SAIPA to join SAICA and SAIPA are most welcome to join.
Jumping higher
I wish all successful candidates the very best for the years to come. This is but the beginning. You can even jump higher.
We can take our cue from fleas. A flea, yes, that little bloodsucking insect, has an amazing ability to jump. A flea can jump 200 times the length of its own body, (about 1.5 mm to 3 mm). If grown humans could jump the length of their bodies they would have jumped over 300 metres!Imagine if humans had this boundless ability in moving to our goals.
A flea trainer will tell you that once you have put fleas in a closed jar, they will try to jump out but will hit the lid of the jar with tremendous force – a very painful experience I imagine. After about 30 minutes you can take the lid of and the fleas will not jump out, even though they now have the opportunity to jump much higher and further.
Let us not restrict ourselves, not at work, not in our personal lives, not in our Province and not in our country. We can jump higher and further, if we refuse to be influenced by the negativity of circumstances and others.
I thank you!
