Johannesburg – The board of the South African Institute of Professional Accountants (SAIPA) has dismissed its Chief Executive Shahied Daniels “with immediate effect” following a disciplinary process.
The decision was based on the outcomes of an independent disciplinary hearing and legal advice.
The board ensured that the process was conducted fairly and without prejudice.
Background of the Disciplinary Process
Since April, Daniels and Chief Operations Executive (COE), Dr. Gavin Isaacs, have been under disciplinary investigation due to findings in a forensic report.
The report alleged that both executives had violated SAIPA’s rules, policies, codes, and procedures, leading to charges of gross negligence, misconduct, and serious governance breaches.
After receiving the ruling and recommended sanctions, the board resolved to dismiss Daniels summarily.
The decision was made after carefully considering the evidence, ensuring that the process respected Daniels’ rights while maintaining the board’s commitment to good governance, transparency, and accountability.
Details of the Charges
Daniels faced six charges, all related to serious breaches of conduct, including:
- Unauthorised International Travel: Embarked on international travels without required approvals under the organisation’s policies.
- Misuse of Funds: Approved payments for his overseas graduation expenses, including dinner, academic gown rental, accommodation, transfers, and travel insurance, all without proper authorization.
- Improper Procurement: Direct involvement in the improper procurement of services from an international company.
- Unapproved Actions: Issued instructions to establish a company in Switzerland and registered SAIPA Global trademarks without board approval.
- Violation of Suspension Terms: Contravened the terms and conditions of his suspension notice.
- Incompatibility with the Board: Demonstrated a character and attitude that were incompatible with the board.
Governance Concerns and Investigative Process
The investigation was initiated after legal and governance experts advised the board of governance concerns and serious allegations against Daniels and Isaacs.
Following this advice, a forensic investigation firm was appointed, which found prima facie evidence of numerous governance breaches and potential misconduct.
Daniels was subsequently served with a notice of precautionary suspension based on these serious allegations.
The independent disciplinary hearing, chaired by a Senior Counsel, found Daniels guilty of all six charges brought against him.
Key Findings from the Chairperson
The Senior Counsel overseeing the disciplinary hearing made several notable comments:
- Daniels was found guilty of serious misconduct, including breaches of fiduciary duties and his contract of employment.
- His defense was deemed to lack merit, and he was found to have been dishonest and lacking in integrity, particularly regarding the formation and registration of SAIPA Global.
- The chairperson highlighted that Daniels’ actions demonstrated a disregard for the board’s authority and a failure to uphold SAIPA’s policies, which he was supposed to enforce.
- The trust relationship between Daniels and the board was irreparably damaged, warranting immediate dismissal.
The board accepted the chairperson’s recommendations and dismissed Daniels.
The Way Forward
The board has also instituted charges against Dr. Gavin Isaacs, and the outcome of his disciplinary hearing is pending.
SAIPA will soon begin the process of appointing a new CEO.
In the interim, the board is working closely with acting CEO Tia van der Sandt and her management team to rebuild staff morale and ensure stability within the organisation during this challenging period.
The board remains committed to sustaining and improving SAIPA’s reputation as a professional accountancy organisation of choice, even as it navigates this difficult chapter.
*This article first appeared in our sister publication techfinancials.co.za
