Saturday, October 24, 2020

Okaile’s curve balls have BICA boss lady’s knickers in a twist

A decision by the Botswana premier league to engage a South African accounting firm and draw terms of its engagement without consulting the Botswana Institute of Accountants (BICA) has angered the Botswana regulatory body.

BICA last week gave BPL a one week ultimatum to have provided the regulator with all the background information on the accountancy firm which is necessary for vetting. BICA Chief Executive Officer, Verily Molatedi last Friday wrote to Botswana Premier League board chairman, Rapula Okaile demanding an explanation on the audit the board has appointed to investigate Premier League Chief Executive Officer, Bennett Mamelodi.

Molatedi asked Okaile to furnish BICA with the name of the accounting firm that has been engaged to do the audit. “We will be grateful if you could please provide us with the name of the said company as well as terms of reference for this assignment” so that we can determine if the services they provide fall within the requirements for registration with BICA,  said the Molatedi in her letter to Okaile. 

Molatedi ordered the BPL chairman to have furnished the accounting institute with a response before end of business Tuesday 6th September. 

BICA wants to know the credentials of the South Africa firm that has been engaged for purposes of vetting and to see if it is in good standing to do the audit. 

The accounting regulator will not accept any bogus audit done by firms that do not abide by the accounting Act. Molatedi further explained that “The Accountants’ Act requires that all individuals and firms who render services requiring accountancy and related skills, or services relating to auditing, taxation, management consulting and financial management in Botswana to register as members with BICA.”

BICA enquiries follow recent press reports indicating that a South African audit firm has been appointed to conduct a forensic audit on the Botswana Premier League.

Sunday Standard Sports reported last week that the South African forensic company has already started poring over the Premier league books and that preliminary signs suggest lack of financial controls.

Asked if the said audit could be considered authentic Molatedi said “In accordance with Section 30(6) of the Accountants’ Act any person who holds him or herself out as a professional accountant without being a member of the Institute commits an offence and is liable to a fine not exceeding P500, 000 or to imprisonment for a term not exceeding 10 years.” 

Molatedi said upon seeing press reports that the BPL has engaged a South African accounting firm, BICA initiated actions to establish the name of the firm and the nature of services being rendered.  “The purpose of these enquiries is to establish whether such firm was required to register with the Institute and – if so – whether it had indeed done so” Molatedi.

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