Dismissed Saipa CEO vows to take on accountants body

Dismissed SA Institute of Professional Accountants (Saipa) CEO Shahied Daniels, has claimed that the Saipa board contravened the body’s constitution and breached governance – vowing to challenge his removal.

Regarded as one of the foremost accounting institutes in South Africa, serving thousands of members, the Saipa website describes the organisation as “actively advocating and promoting ethical and responsible behaviour within the profession, in order to retain public trust and confidence”.

But Daniels has levelled serious allegations against the Saipa board.

Serious allegations about Saipa board

In an open letter entitled Truth vs False and Misleading Narratives, Daniels said his legal team “has been fully apprised of the situation and is reviewing the entire matter”.

“Both the disciplinary process and the dismissal itself, will be challenged,” he said. Allegations raised by Daniels include:

• The board issuing a questionable Call for Nominations in May, for the position of independent board member and chairperson of the audit committee – a highly irregular action, because no such vacancy existed.
• Doris Dondur who was appointed chair of the audit committee, who made an alarming statement declaring that she intended “to frustrate management”.
• Dondor – in a report to the board audit committee – misrepresented key elements of what transpired during the management committee meeting and being forced to make changes.
• Despite her resignation with immediate effect as chair of the audit committee – following a 30-page protected disclosure submission (by Daniels), which included supporting evidence – the board unconstitutionally reappointed her.
• Despite her resignation last July, Dondor was a signatory to the suspension notice served on the CEO – further exacerbating concerns about her role and conduct in the organisation.

ALSO READ: Saipa announces the winners of the 2023 National Accounting and Maths Olympiad

“I was made aware of several professional conduct cases, filed against board members who are also Saipa members,” Daniels said.

“Of the nine non-executive directors on the Saipa board, seven are members of Saipa, thus subject to its professional conduct oversight.

“Despite these complaints, the whistleblowing process in Saipa has been severely compromised. This failure has undermined the integrity of the process and has allowed serious allegations to go unaddressed.

‘Saipa has been severely compromised’

“Since my suspension, several Saipa staff members, have confidentially contacted me to express concerns about the toxic work environment – intimidation, bullying and heavy handedness under the acting CEO and COE.

“Three staff members filed grievances with the chairperson of the board, but to date none of these grievances have received a response.

ALSO READ: A foot in the door for SA’s future accountants

“Three senior staff members have resigned, citing harassment and mistreatment, as well citing an impact on their mental health as the primary reasons for their departure.”

Commenting on the Daniels dismissal, Saipa chairperson Prem Govender said Daniels faced six charges of misconduct, which included:

• Embarking on international travels without approval, in terms of the organisation’s policies.
• Approving of invoices for payment in relation to participation in his graduation overseas, hiring of academic gown, accommodation costs, transfer costs and travel insurance.
• Being directly involved in the improper procurement of the services of an international company.
• Issuing instructions for the establishment of a company in Switzerland without board approval and registering Saipa global trademarks.

Board resolved to dismiss CEO

Govender said: “The process took careful consideration of the rights of Daniels, his responses to the charges as well as the board’s commitment to good and clean governance, transparency and accountability.

“After considering the outcomes of a disciplinary process by an independent chairperson, receiving legal advice and ensuring that the process had been conducted fairly and without prejudice, the board of Saipa resolved that the CEO should be dismissed with immediate effect,” Govender said. dismiss