Anoj Singh stripped of Saica membership

Former Eskom and Transnet CFO found guilty of improper conduct; gross negligence, among other charges.
Anoj Singh. Image: Moneyweb

Anoj Singh, the former chief financial officer of Eskom and Transnet, has been barred from Saica membership in a decision handed down on August 14, 2020 by the disciplinary committee of Saica. Singh will also be required to make a contribution of 50% of the institute’s costs.

Read: Eskom suspended CFO quits before facing lawmakers

Singh’s attorney had informed Saica that he would not participate, and Singh did not attend the proceedings which commenced on November 13, 2019.

Singh’s charges related to:

  • The acquisition by Transnet of 1 064 diesel and electric locomotives at an ultimate cost of R54.5 billion during his time as CFO of Transnet (2012–2015).
  • The authorisation of payments of substantial sums to various service providers during his time as CFO of Eskom (2015–2016).

Charges relating to the 1 064 locomotive deal

The cost of the 1 064 (465 diesel and 599 electric) new locomotives was R38.6 billion per a detailed business case that had been prepared. No notice was given that this cost excluded forex hedging, forex escalation, other price escalation and borrowing costs. On March 17, 2014 a contract was concluded with four bidders, and the total cost of acquisition had jumped from R38.6 billion to R54.5 billion.

Singh was found guilty of improper conduct, conducting himself in grossly negligent way, in breach of the institute’s code of conduct for the following reasons:

  • He failed to ensure that the business case accurately stated that the initial costs of R38.6 billion would include additional costs such as forex hedging, forex escalation and other price escalations.
  • He incorrectly attributed the increase in costs to a number of factors including forex and escalation costs. “The reasons advanced for the increase were thus misleading and negligently made.”
  • He altered the hurdle rate from 18.56% to a lower rate of 15.2% to ensure that the more expensive locomotives would still be profitable to Transnet.
  • He misled the board in indicating a cost saving, when there wasn’t one. He therefore was also in breach of the institute’s code of conduct.
  • Singh, together with two others, motivated for the splitting of the award to two bidders for diesel and another two bidders for electric locomotives, leading to an increase in costs, and in contravention of procurement processes. 

Eskom-related charges

Singh was charged with gross negligence, improper conduct, breaching the code of professional conduct, and bringing the profession of accountancy into disrepute:

The institute relied on documentary evidence to consider the charges against Singh:

  • The approval of irregular payments to McKinsey: Singh joined Eskom after McKinsey was appointed, and the charged were dropped.
  • Singh approved substantial irregular payments to Trillion despite the fact that they had no employees and couldn’t provide any services: There was no contract between Eskom and Trillion, invoices were sent by Trillion to Singh’s email address for approval.
  • Singh approved the payment of a performance guarantee of R1.68 billion to Tegeta, and the advance of R659 million to Tegeta for the purchase of the Optimum Mine.

Read: Swarm of court cases engulfs former Gupta mines

Singh was found not guilty in regard to his improper relationship with the Guptas, who had paid for his travelling expenses, as the trips took place before Singh joined Eskom.

Singh’s conduct at Transnet and at Eskom “resulted in these public institutions suffering substantial financial prejudice”.

“The institute demands of its chartered accountants that they exercise not only due diligence and care but that they demonstrate objectivity and integrity in their professional conduct. Mr Singh regrettably did not adhere to these standards.”

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What does it matter to lose your CA if you have R50 million stashed away in an offshore bank account? You will never have to work a day in your life again.

He is merely a manifestation of the system that put him there. He was a carefully selected instrument in the hands of the more senior individuals in Luthuli House who enabled and incentivised him to plunder the shared resource on their behalf. Only the most economically ignorant and naive individuals expect the socialist system to rid itself of corruption. Socialism is rooted in corruption, incentivises, enables and rewards corruption, acts against moral and ethical behaviour, and removes capable people.

Society cannot vote for corruption and then be surprised when they suffer from corruption. Ultimately, Anoj Sing is the unavoidable product of the collectivist mindset. He is an accurate representation of the average voter. The average voter is unfit to vote, according to this finding by Saica. “For every tree is known by his own fruit”.

10 years too late ne !!

Just another BEE or is it AA appointment gone very wrong!!

I suppose Marcus Jooste is the exception?

Let’s not make this about colour, corruption comes in all colors and sizes

Agree with Broke_Mogul

Extract from the City Press Report, dated July 2018:
“The draft report found that Singh received six suspicious deposits totalling R16 million into his bank account in a single month: July 2016, when he was Eskom CFO. Among the payments was one of R9 million and another of R5 million – both described as telephone banking transfers.

“It is not clear how Singh accumulated [a] balance of R19 million that was in his account. It is also not clear why he transferred R16 million on July 14 2016 into two other accounts,” the report states.”

Now, if this is NOT false news, then why – for heavens sake – is Anoj Singh not charged?? Or are they waiting for him to abscond to Dubai? Or was this merely his ‘salary’ for month of July 2016!??

That will reeeeeally teach him to never steal billions again…………..

So what about the big auditing firms involved in State Capture?

Agree – – – and Law firms who made millions from all these transactions and hiding deals and money – – – and then the banks who charged massive commission and fees – – – – – SA is really a heaven for the corrupt where everyone pretends the deals are legit and morally in order.

Nothing will happen to them. A few quiet resignations at the firms, non disclosure agreements and out of court “no guilt admission” payments will suffice. Ethics are drilled into the curriculum of aspirant CA’S from their 1st year till final year and endless ethics updates and training is mandatory. Take note..it is a ll a sham and these auditors are as corrupt and spineless as the names mentioned above…this is the true face of the profession.

Put them in orange overalls and pay back the money. Then we’ll braai

… with Klipdrif & Coke … doubles!

Anoj must feel really proud of himself… setting a great example for his children and for others who turned to him for setting leadership standards. Proud moment, hey?

So what ????? With all the millions he probably scored on the deals and in salary I dont think he is going to be very upset by this tickle on the wrist

Anoj Singh is and was a cadre deployment.

Do we assume when we have him in the dock, that we have the real guilty members of these frauds on the ropes?

With these massive transfers of money, he in most cases needs approval and sign-off at a ministerial level. Finance, Public Enterprises and Treasury. He also needs orchestrated instruction, these amounts are not random, coincidental and neither were their final destinations, whatever those might be.

Even at the ministerial level, these are not lone wolf operations. They act only as directed from the very highest levels of the socialist collective.

By all means threaten this man with orange jump suits, along with Molefe and Gama who are in as much ‘trouble’. Can you imagine what Anoj Singh knows!? They would sing like canary`s if they thought they were gong down. But the question is, will this ever happen. They and theirs are set for life with offshore $$$. If the punishment is not real, other than a sacrificial lamb slap on the wrist, we will never see the true masters of these frauds brought to book.

This Singh needs jail time, always too smooth in interviews, sidestepped questions, silly grins, sad bit is he will use his ill gotten gains to fight the justice system and stay out of jail using taxpayers money.

Poor fellow-being made a scapegoat while the real criminals loaf in Dubai and our Parliament untouched!

Most CAs wouldn’t “sell out” for R50mil. They’ll make more the good old fashioned way.

Recently though , the market has been flooded and that is creating more more reasons for people to be dishonest. If you are entrusted with millions and earning R100k a month , the temptation/risk reward becomes blurred.

Personally I wouldn’t , do what he did. But many might feel different

Company’s Act allows for directors to be personally liable for the losses a the company.

SAICA needs to take it one step further and sue him for all the losses at the entities he had directorships of.
He will continue to be a mockery of the profession unless they do that.

Now we are just waiting for SAICA to give Marcus Jooste also his marching orders and possible gaol-time for both.

I believe that the law will ‘get him’.

The most disturbing aspect of this matter for me, is the effect of this on the life of ordinary South Africans. How do you motivate yourself to go to school, university, strive for security for yourself and family when the blokes who are going to employ you are criminals. Justice must be served.

This guy’s nothing but a pawn. The fall guy. Accountants dont negotiate contracts. The ministers do. Saica trying to save face by taking charge and publicly executing their delinquent at dawn as if he alone was responsible for these misdemeanors shows how phony they are and how they are actually part of the corruption problem. what they should have done is warn and train any potential delinquents not to get pressured by corrupt individuals in their work environment. SAICA, NPA, FSB these are our checks and balances, yet corruption thrives.

I’m sure he isn’t bothered in the least. With dropping standards and membership number increasing by bucket loads each year it’s not like membership is particularly valuable (as least not anymore). Every year when the exorbitant membership fees become due I consider giving up my membership for free – no disciplinary needed to free myself of that liability.

End of comments.

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