A year ago, while most South Africans were embracing the holiday period, a new Auditor-General was appointed by the President. The news barely made a ripple, but then no one expected the man to put a spanner in the accounting works.

Shauket Fakie, the man who balances South Africa’s books, first made waves earlier this year when he rejected the South African Revenue Services’ audit report for the 1998-1999 period. His reason was simple. Fakie felt the report did not accurately reflect how much tax had been collected and what amount was still outstanding.

SARS said that the problems arose because it switched from a cash based system of accounting to an accrual based one, resulting in a R413 million difference. They argued that the old system may not have been as accurate as the new one, or manually recording the amount of collected taxes meant the figures were slow to reflect. Fakie did not buy into any of the reasons, and issued a disclaimer when he tabled his report to Parliament.

The thought of entering into correspondence with the staff at SARS, let alone challenging their records, would make the bravest South African quiver, but Fakie did it, and SARS took note – this is an AG who is prepared to get his hands dirty, and for the next seven years (his non-renewable term of office) will challenge the slightest discrepancy.

Fakie’s outspoken approach saw him make headlines again recently when he presented his first report as Auditor-General to Parliament. Fakie criticised government departments’ unauthorised spending of more than R151 million at the end of the last financial year, and the under spending of other departments such as Welfare. Fakie is also worried by the lack of accountants within government departments, saying the government’s internal book keeping is "a mixed bag – the will is there but the tools are not".

From the onset of his appointment as Deputy Auditor-General, Fakie has been instrumental in paving a path towards total accountability. The Office of the Auditor-General operates independently of government, on paper and in practice, and really is world-renowned.

The Office’s reputation is no exaggeration. The United States Agency for International Development (USAID) labelled the South African Audit Office as "one of the premier audit organisations on the entire continent". Last February it signed a memorandum of agreement with the South African Office, formalising the working relationship between the two bodies for conducting USAID’s audits of bilateral donor funds.

The AG’s Office was also re-appointed as the external auditors of the World Health Organisation (WHO) for the next four years. This came after the auditing team initiated several improvements for WHO, including establishing an audit committee that would ensure improved accountability and improvements in financial reporting to the World Health Assembly (WHA), and developing a core of expertise specific to WHO.

This was not the Office’s only call for an encore. It had for three years (together with Finland) been conducting the "small but prestigious" audit of the International Organisation of Supreme Audit Institution (INTOSAI), from 1994 to 1997. The South African Office’s work was of such a high and professional standard that it led to them being re-appointed to the assignment - a laudable achievement when one considers that in the past, a new auditor had been appointed for every new three-year term.

Fakie’s Office has also been appointed as the external auditors to the United Nations (UN) from the beginning of July 2000. It shares the responsibility with Britain and the Philippines, and has been assigned to audit peacekeeping operations for the next three years.

The list of the Auditor-General and his Office’s achievements is infinite, but there is one that stands out. In October last year the South African Office was given the honour of hosting the 17th annual Commonwealth Auditor_Generals’ Conference. The theme "Auditing in the next century" was sub-divided into three categories dealing with universal issues - Adding value to the Audit Product: the role and responsibilities of the Supreme Audit Institution, Forensic, Environmental and Computer Audits.

Shauket Fakie has the well-rounded education and experience to take on those challenges. He completed his BCompt Honours degree in 1983, while serving his articles at Ernst & Young in Cape Town where he was made Audit Supervisor. He obtained a wide range of experience when the constraints of apartheid led him to take up a partnership position in an Australian auditing firm, Francis A Jones & Associates, from 1987 to 1991. He worked as an independent auditor, consultant, tax advisor and financial accountant in both the public and private sector.

In 1992 he returned to South Africa and joined Ernst & Young as a Senior Consultant, developing business plans, rendering management advisory and business processes, and re-engineering services to the Departments of Education, Health and Public Works.

As the Deputy Auditor-General and CEO, Fakie made employment equity within the ranks of the Office a high priority. He oversaw the running and results of the Affirmative Action Forum - established to review the Office’s equity target of 39% at management level. Under Fakie’s watchful eye, by March 1999, the Office had already reached 38 % representivity. It is one of Fakie’s missions to achieve race and gender equality in his Office, which currently stands at 41% representivity.

One of the ways in which Fakie hopes to speed up equality in the industry, is by supporting emerging black audit firms, primarily by contracting work out.

"The demands of the new economy forces all industries and professions to be revamped," said Fakie at a recent dinner hosted by the Association of Black Chartered Accountants of South Africa (ABASA). "The Accountancy Profession needs to focus their methods of recruitment more on the excitement of the profession. Making the profession intriguing, even glamorous, may be needed to win the hearts of the next generation".

Fakie believes the accounting industry should delve into the rich pool of resources available in this diverse country.

Of the 18 760 Chartered Accountants in South Africa, less than 1 000 are black.

"ABASA has a major role to play to increase the number of black CAs and to take black accountants to a different level. They need to develop and grow their members professionally and contribute to the growth of the national economy."

To ensure accountability within his Office, Fakie stresses the importance of independence and objectivity to maintain a high professional standard. These qualities are crucial when it comes to combating economic crimes in South Africa and maintaining the Office’s first rate reputation internationally. Fakie recently encouraged top management from his Office to participate in the National Anti-Corruption Summit in Parliament.

Apart from fighting white-collar crime, another issue close to Fakie’s heart concerns education and training in South Africa. Fakie believes "the two need to be aligned to the business needs and challenges of the ‘real life’ people will face when they are out there". Fakie says one of the main problems the country is facing has been caused by an education system that taught facts and theories without the method and application.

Fakie maintains that being a CA(SA) has given him the "skills, knowledge and experience to take on any work in the financial and auditing fields, think logically, have an eye for detail in financial management and assist people determined to make a success in business". However, as much as being a CA(SA) has given him the confidence to "handle any task in (his) field", Fakie recognises that in today’s competitive market, a CA(SA) has to be a generalist, well versed in the art of giving presentations, speaking in public and managing human resources.

Fakie believes CAs(SA) will lead the way in stabilising the country’s "fledgling economy". CAs(SA) "need to move away from traditional ‘bean counters’ and become a more energetic and dynamic group that is seen to add value, operate independently with a high level of integrity, and command respect."

Fakie urges upcoming CAs to take advantage of their opportunities. "All you need to do is to have a vision, be focussed, committed and work hard at achieving your goal."

One need look no further for a role model than Fakie himself.

With acknowledgements to Sian Singh and Accountancy SA.