Auditors and accountants championing efforts to eliminate corruption in EAC

PIC: Pius Maneno, (middle) the executive director of the National Board of Accountants and Auditors (NBAA) of Tanzania speaking to journalists at his office at Mhasibu House in Dar es Salaam, September 26, 2018. Right is Margaret Kageya, marketing information officer of NBAA and Charles Masabo, acting manager services department. Photo by Eddie Ssejjoba

The auditors and accountants' bodies are championing efforts to eliminate corruption in both government and private institutions using the East African integration through instituting heavy penalties to firms and members who cover up the vice.

Pius Maneno, the executive director of the National Board of Accountants and Auditors (NBAA) of Tanzania stated that the body was taking the lead in eliminating fraud and any other forms of scams in both private and government institutions.

He said the members of the NBAA have agreed in principle to report any suspected fraud including tax evasion and any other form of financial irregularity or ‘anything unusual' during execution of their duties.

Failure to disclose information by any professional member, and when it is discovered later that a firm or individual knew about it and covered it, that company or person is penalised.

According to Maneno, any professional, whether Tanzanian or from a partner state who has been cited to have covered up fraud cannot be allowed to offer services in the country, including when he or the firm is under investigation for suspected fraud.  

"Accountants and auditors work for the public interest and must always try to avoid mischief, exercise transparency and openness," he stated.

He was recently briefing journalists at Mhasibu House in Dar es Salaam who were drawn from the six partner states of the EAC on a media tour of the region to assess progress and challenges in the implementation of Mutual Recognition Agreements (MRAs), Single Customs Territory and the Pharmaceutical sector.

The tour was organised by the EAC secretariat in collaboration with the German Co-operation and the EA Business Council.

To emphasise the point, Maneno gave a recent example of a Ugandan firm he did not mention, which was operating in the country in partnership with a Tanzanian firm.

But the partnership was stopped and struck off the list of professional practitioners after information reached the board that it was being investigated in Uganda for alleged fraud.

Maneno said; "That is how we want others to learn from us. We have started and we are running while others are walking".

"We are also helping other institutions in EAC to discuss anti-corruption and with these tough measures, nobody is going to be spared in the region," he stressed.     

The Tanzanian board wants their example to be reciprocated to other similar bodies within  EAC that subscribe to the Mutual Recognition Agreements (MRA), under which firms and individuals are accorded equal rights and free movement of professional services in partner states without any restrictions.

The MRA for accountants and auditors, according to Maneno, was signed on September 14, 2011 and allows professionals to move and offer their services in the region without restrictions.

He said under the MRA arrangement each state must have in place a regulatory body to which professionals subscribe, which enforces discipline and observance of their code of conduct.

To discourage professional misconduct, if a member or firm is banned or suspended in a partner state, The firm would not be allowed to practice or partner with any firm within the region.

He said Uganda had also been assigned to work on the customs and taxation review where they need common knowledge and understanding to be able to harmonise the basic syllabus for professionals.

"Each regulatory body in the partner states will be given a task to review so that we can put in place uniform policies," he stated.   

He said the regulatory bodies are supposed to work with the immigration department to clear individuals with recommendations from their respective countries for security clearance.

The immigration department authorises require one to acquire a work permit, which many practitioners still argue is a rigorous and costly exercise.

But Maneno said  the immigration plays a part in helping their bodies to avoid permitting firms or individuals that have links with international terror groups to transact business in the region.

As regards enumerating challenges of implementing MRAs in the region, Maneno  said South Sudan, which came into existence after the adoption of the agreements, was yet to register after putting in place a regulatory body at home.

He said the MRAs also still has challenges with Burundi, which is still using French as their official language, requiring them to translate all documents.

Burundi was also still following the Francophone policies, where if one member is appointed to cabinet, one is struck off the list, which he said does not apply in the English speaking countries.