MINISTER of Housing and Urban Development Apollo Maphalala has warned that the nation’s public institutions face collapse unless the accounting profession returns to its ethical base.
He emphasised the critical role auditors and accountants play in governance. He highlighted a growing and dangerous disconnect between favourable audit reports and the actual health of public entities.
He was speaking during the ethics breakfast meeting hosted by the Eswatini Institute of Accountants at Sibane Sami Hotel. The institute also recognised academic excellence by awarding the top EGSCE performing pupils in the four regions.
The breakfast meeting served as a reminder that in a rapidly changing environment, the strength of the profession lied in its commitment to truth, accountability and strong moral character. A keynote address was given by the venerable Wiseman Nkuhlu who spoke on ‘Harnessing ancient wisdom to energise ethical leadership in the 21st Century in the accounting profession’.
Maphalala, who was one of the speakers, emphasised the role of ethical conduct in safeguarding institutions, and spoke on the risks posed by weakening ethical standards.
The minister expressed deep concern over a recurring trend where annual auditing reports presented to Cabinet suggest an organisation is stable, while the reality on the ground indicates a downward spiral.
He said relying on what accountants and auditors say was very critical because sometimes reckless decisions are taken even in terms of pronouncements, as they rely on the financials prepared by the professionals, yet many institutions continue to go down the creek.
A central theme of the minister’s address was the need for accountants to resist external pressures, whether political or emotional. He cautioned against making pronouncements based on the demands of Parliament or other stakeholders.
“We tend to think that now that the professionals have pronounced it, it is okay yet the institutions, particularly public ones, continue to fail.
When you make a pronouncement, it should not be an emotional one based on what other people have said or what Parliament is pushing you to say. It must be based on the principles shared and on a higher moral standing.
“Sometimes we take reckless decisions even in terms of pronouncing ourselves in terms of the financials that we prepare, institutions continue to go down the cliff. Pronouncements should be based on the principles as shared and on the higher moral standard, because I think that is very important,” Maphalala added.
The minister warned that a narrow focus on mere compliance was no longer sufficient to protect the public interest.
He argued that true leadership requires a moral fortitude that transcends checkboxes, ensuring that financial reports reflect the true economic substance of an entity rather than a manufactured sense of security.
