SAIPA Chief Exective, Shahied Daniels

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 the South African Institute of Professional Accountants (SAIPA), has resolved that the Chief Executive (CE), Shahied Daniels, should be dismissed with immediate effect.

Since April, Daniels and Chief Operations Executive (COE), Dr Gavin Isaacs, have been participating in a disciplinary process to answer on the findings made in the forensic report which found, in summary; that the CE and COE had contravened the institute’s rules, policies, codes, processes, procedures, amounting to charges of gross negligence, misconduct and serious governance breaches.

We have now received the ruling and recommendation of sanction as regards Shahied Daniels.

After considering the outcome of the disciplinary process, chaired by an independent Senior Counsel, thereby ensuring that the process had been conducted fairly and without

Six Charges

Daniels faced six charges, summarised as contravening the institute’s rules, policies, codes, processes, procedures and amounting to gross negligence, misconduct and serious governance breaches by:

• Embarking on international travels without approval in terms of the organisation’s policies;

• approving of invoices for payment in relation to his participation in his graduation overseas, graduation dinner, 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 without board approval;
• Contravening the terms and conditions of his notice of suspension  and
• Demonstrating a character and attitude of incompatibility with the board.

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.

Processes Followed

The process started after legal and governance experts advised the board that there were governance concerns and serious allegations against the CE and COE that required a forensic investigation.

Daniels was served with a notice of precautionary suspension based on serious allegations and possible acts of misconduct in his role and capacity as the Chief Executive.

The Board then appointed a forensic investigation firm which found that there was prima facie evidence of numerous breaches of governance, SAIPA’s policies and procedures and potentially serious misconduct.

Found Guilty

The disciplinary hearing, has now found him guilty of all six charges preferred by the Board against him

What the Chairperson Said

Amongst other comments, The Senior Counsel said:

• “Mr Daniels has been found guilty of six charges of misconduct, together with their various sub-allegations. The charges, considered individually and/or cumulatively, constitute gross misconduct, serious breaches of his fiduciary duties and his contract of employment.
• “I have considered each of the pillars of the defence proffered by Mr Daniels and find that there is no merit to them.”
• “I found Mr Daniels to have been dishonest, by lack of integrity and straightforwardness, in failing to disclose in the Strategy Plan all the catalogued steps that had been taken towards the registration and formation of SAIPA Global”
• “Mr Daniels has been found guilty of serious misconduct which has resulted in SAIPA losing confidence and trust in him. SAIPA has provided evidence that proves that Mr Daniels did not consider himself accountable to the Board. One such instance – which was not an isolated incident – was when the Board rejected the Strategy Plan and Mr Daniels proceeded to authorise the registration of trademarks in Switzerland.”
• “The evidence shows that the special trust relationship between Mr Daniels and the Board has been vitiated. He further contravened SAIPA policies that he signed and is a custodian of.”
• “I find that on each charge, viewed singularly and not cumulatively, a sanction of dismissal is warranted and appropriate. Accordingly, I recommend that Mr Daniels be dismissed with immediate effect,”

The board has accepted the Chairperson’s findings and has dismissed Daniels.

The Way Forward

The board has also instituted charges against the Chief Operations Executive, Gavin Isaacs. We awaiting the outcome of that hearing.

The process of appointing a new CEO will begin soon. Alongside this, the board is working closely with the acting CEO, Tia van der Sandt and her management team to ensure a process of rebuilding staff morale after this extremely difficult episode. 

We remain committed to sustain and continuously improve SAIPA and ensure that we continue to be the professional accountancy organization of choice.

About SAIPA

The South African Institute of Professional Accountants (SAIPA) is a leading Professional Accountancy Organisation (PAO) in South Africa, dedicated to serving and protecting the public interest by upholding the highest standards of professionalism and ethics.

 Established in 1982, SAIPA represents more than 10,000 qualified Professional Accountants (SA) across various sectors, including practice, commerce and industry, academia and the public sector and has been at the forefront of shaping legislation and influencing the development of standards that govern the industry.

Issued by Mrs Prem Govender, Chairperson: SAIPA

Media Enquiries: 

For more information on SAIPA, visit www.saipa.co.za

SAIPA Contact:

Rochelle Bates, Sales & Marketing Executive

Cell: 076 887 9720

Email: RBates@saipa.co.za