Mr President, the time to act is now – one accountant at a time

South Africa’s infrastructure crisis touches on many points. From the deterioration of our municipalities to debt-laden state-owned entities (SOEs), these troubles point to our country’s macro issues of crime and corruption.

But we already know that. What’s less clear is how we find a way through these turbulent times.

Read: SA’s trust deficit hits new low

While it may not address those underlying conditions, I want to propose one critical measure sure to get our country back on track: attracting more qualified chartered accountants (CAs) into the public sector. Let me explain why.

The South African Institute of Chartered Accountants (Saica) is widely recognised as one of the world’s leading accounting institutes.

Currently, only 3% of Saica-registered CAs work in the public sector.

This figure reflects what we see at BDO, where the majority of our annual trainees completing traineeship either go on to work for us or leave the firm to take up jobs at banks, in corporate finance, or at other private corporate entities.

Some also head overseas to work in that foreign country’s public sector. Very few of these newly qualified CAs enter South Africa’s public sector, as it is not seen as a viable option to many. And with most accountants spending their entire internships at private firms, the vast majority never get any exposure to the public sector.

So, what’s going wrong?

Let’s return to those macro issues. Many professional accountants working in the public sector have witnessed unethical practices and received pressure to sign off on questionable activities and expenditure.

This not only undermines the integrity of the profession but also tarnishes the reputations of these professionals who remain in the public sector for an extended period, as they become associated with questionable activities, which eventually pushes them out from serving the country.

To make matters worse, these professionals in the public sector who try to address corruption encounter significant personal risks.

Some even receive death threats for uncovering irregularities and speaking out against them.

Listen/read:
Whistleblowers: There’s scope for more legislation
Only 14.5% of municipalities obtained a clean audit – AG report

I was speaking to a colleague who works in the public sector recently. She said something that should make us all introspect the deep crisis we have. In her words: “There is no longer any respect for professionals that want to make a difference in the public sector.”

These safety concerns and lack of respect, combined with the lack of trust in the system, are the primary drivers that deter skilled professionals from even considering a career in the public sector.

Read: South Africa’s corporate whistleblowers don’t get enough protection

For the purposes of this piece, let’s say we have tackled the issue of crime and corruption with regards to the public sector.

Now with a safer working environment, suddenly the public sector presents a massive opportunity for professional accountants — but only if we can now encourage them to consider working in this area.

The first step is to expose students to the public sector at an early stage, starting with the school curriculum.

Accounting and economics textbooks should include content on the public sector, ensuring that students gain an understanding of its importance and potential career prospects.

This should continue at university level, where aspiring accountants learning about the Audit Professions and Companies Act should also be taught other key legislation like the Public Finance Management Act and the Municipal Finance Management Act.

Integrating these subjects into the curriculum and providing students with practical exposure will help them better understand the public sector and its complexities, making it a more appealing prospect come time for their traineeship.

As for the mandatory three-year training period required to qualify as a chartered accountant, another measure could be to make it a requirement to spend some of that time in the public sector.

This could be a three- to six-month placement that exposes trainees to the realities and challenges of working in the public sector — akin to the compulsory community service of medical and psychology students.

If these young professionals are given such an opportunity to gain valuable experience during their training, it’s likely a higher percentage of them will consider pursuing careers in the public sector upon qualification.

And that’s not the only proactive measure government could take to attract more professional accountants to the public sector.

Tax incentives and seats on boards

Another approach could be to offer tax incentives to professionals who choose to work in the public sector, which would make these positions more lucrative.

As an aside – Mr Finance Minister, don’t lose sight of this tip for your next budget!

With these measures in place, we could begin to see a lot more CAs working in the public sector.

At this point, the government could even go about establishing its own management company to employ non-executive directors and deploy them across SOEs and municipalities.

Just imagine the impact this could have, helping to bring in the right expertise and enhance corporate governance in the public sector.

The good news is that it’s not too late

We are beginning to see it happen, with the recent formation of crisis committees between government and the private sector to tackle the country’s problems.

Read: A collaborative journey begins between government and business

But this is just the beginning. The government needs to prioritise the public sector and actively work toward creating a safe and appealing environment for professional accountants and other professionals.

This will not only attract skilled individuals but also build a sustainable public sector that can contribute to the country’s development and address critical infrastructure needs.

Working together, we can make this a reality. We all need to shoulder together and make an intentional effort to protect our beautiful country.

Zak Sadek is assurance services partner at BDO South Africa.