1B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s

A time of

CHANGEsays Katherine Canavan at the BIA Dinner Dance

Botswana’s

BOOMby Matt Horsburgh

MONEYLaunderingThreatensDemocracy

Volume 3 September 2008

Yours to embrace, ours to conquer

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B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s

Contents

@2008 BIA IS PUBLISHED ON BEHALF OF THE BOTSWANA INSTITUTE OF ACCOUNTANTS. NO PART OF THIS WORK MAY BE USED IN ANY FORM OR BY ANY MEANS GRAPHICAL, ELECTRONICALLY, MECHANICALLY INCLUDING PHOTOCOPYING, RECORDING, TAPING, INFORMATION STORAGE OR RETRIEVAL SYSTEM-WITHOUT PERMISSION FROM THE INSTITUTE EXCEPT IN ACCORDANCE WITH THE ACCOUNTANTS ACT OR LAWS OF BOTSWANA.

PRESIDENT’S COLUMNPresident’s Remarks ...................................2LEAD STORY

A Time for Change by Katherine Canavan at the BIA Dinner .........................................................4

TAXATIONCecilia Ramabu- Non-Accounting Professionals and Taxation .............................................................6Tax and VAT Implications- Gladys Makachiwa ..........7Global VAT Survey.....................................................8BIA NEWSBIA Releases career video .......................................10BIA EVENTSStakeholders’ Cocktail (career video launch) ..... 14-16PROFILEJohn Binnie Kauya Profi le .......................................18LEADERSHIPLeadership – by Duncan Majinda ...........................19Money laundering threatens democracy ................20

MEMBERSHIP MATTERSRegistered Membership Category of BIA ................21STAFF PROFILEProfi le- New Staff Member ....................................22Joke of the week ....................................................22Life’s Lessons ..........................................................22AAT Approved Assessment Centres in Botswana ....22BIA Sporting Calendar ............................................22How To Manage Your Boss .....................................23INTERNATIONAL NEWSBotswana’s Boom- by Matt Horsburgh featuring Duncan Majinda .....................................................24The Queens birthday Honours AAT CEO Jane Scott Paul ................................................26BIA SPORTINGGolf ........................................................................27WELLNESS CORNERCorporate Wellness Solutions .................................28

2 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

Message from President

It gives me great pleasure to bring you the third newsletter for this year, which is out after a lot of effort. This newsletter also marks

the first edition during the second term of last year’s Council.

I should thank all the members who contributed articles to this publication. I however would still like to urge our members to keep contributing, because as I always say the success of this magazine is dependent largely on the contributions that we get from members of the profession.

In the previous edition, I noted that members were forthcoming as regards to CPD returns. By the time you read this publication the monitoring of the CPD returns submitted would probably have commenced.

It is refreshing to note that the much anticipated career video, “The Making of an Accountant”, was officially launched at the Stakeholders’ Cocktail on the 10th July. The video marks a new era in the development of the accountancy profession in Botswana. The shortage of professional accountants has propelled us to come out with new ways to arrest the situation, and as such, the career video will help in this regard.

The Council continues to push hard for the passing of the Financial Reporting Act (FRA). The Institute has done everything to facilitate the process, the matter is now with the Ministry of Finance and Development

Planning and the Attorney General’s Chambers, and hopefully the Bill will go through Parliament in the November session of 2008.

By the time you read this publication, the BIA Council would have attended a strategy formulation session which would guide the Institute in the future. Another development would be the opening of the Francistown satellite office whose main aim would be to service members in the northern part of the country.

Let me again thank all you members for your support and urge you to volunteer your services to the various committees and activities of the Institute.

Priya Iyer : PRESIDENT

B I A P R E S I D E N T ’ S C O L U M N

The Council of Botswana Institute of Accountants does not necessarily agree with nor guarantee for the accuracy of statements made by contributors or advertisers or accept responsibility for statements that are in this publication.

4 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

The outgoing US Ambassador to Botswana Mrs Katherine Canavan was one of the dignitaries invited to the BIA Dinner, as well as being the guest speaker at the event. Mrs Canavan praised the country’s changing but stable and exemplary political and socio-economic scenario.

She cited among other things the peaceful handover of the Offi ce of the Presidency from former President Festus

Mogae to His Excellency Lieutenant General Seretse Khama Ian Khama. Canavan pointed out that though political change may be a time of alarm and uncertainty, Botswana’s experience and a review of the country’s past should give everyone the confi dence that the country has the ability to make the right changes to meet future challenges. Change, she said, is a time of refl ection but also intellectual stimulation.

Mrs Canavan noted that Botswana’s achievements and progress over the past four decades was partly due to its partnership with the United States and the American people, something she observed up close and personal by virtue of being Ambassador. Having served as Ambassador in Namibia, Lesotho and as a Peace Corps Volunteer in Zaire, Botswana’s ability to remain resolute at a time when most African countries were ravaged by various ills impressed her profoundly. “Botswana remained a peaceful island in a regional sea of storms, when apartheid plagued South Africa and Namibia and wars wracked Angola, Mozambique and Rhodesia. I witnessed the end to this tragic scourge of institutionalised racism while serving in the US Embassy in Windhoek in the mid-1990s”, she recalled. Canavan says the event was surely celebrated in Gaborone, which

then became host to other Southern African Development Coordination Conference (SADCC) stalwarts, which then evolved into the current SADC whose Secretariat remains situated here.

Canavan commented that Botswana has come a long way in development since independence in 1966, and that it would be understandable for many to be complacent and happy with the status quo. However, she stressed, Botswana will have to continue to change to meet future challenges.

On the business front, Canavan offered some pointers on areas Botswana might wish to focus its current attention to attract greater shares of the foreign trade and investment that will fuel and sustain economic development. She mentioned three slogans that business people and offi cials can look hard to change, as well as stressing the importance of economic diversifi cation. The three slogans she preached about were;

Embrace Entrepreneurial Excellence

Cultivate a Culture of Customer Service; andFear Not the Foreigner

Mrs Canavan implored business and civic leaders to understand their moral imperative and obligation to the country’s future well-being; that of assisting an educated population of young people ready for occupation with appropriate job creation and placement. She went on to applaud the foresight the Botswana Institute of Accountants had in establishing the Accountancy Training Institute, which she says has trained many of today’s accountants and enabled many young Batswana to fi nd employment. The challenge for Botswana, she stressed, is not simply fi nding a place for its new workers but rather for a small market it is to fi nd its place in the global economy.

“Botswana must reach out to foreign traders and investors and offer a welcoming and level playing fi eld to attract interest here. Thus business people from all over must feel that the rules are clear especially for big-ticket government

Katherine Canavan, outgoing US Ambassador at the Botswana Institute of Accountants 2008 AGM Dinner

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B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

procurement or projects such as housing schemes, infrastructure and new transportation assets as well as reducing excessive non-trade barriers such as long registration periods and diffi culties in obtaining work and residency permits”, she challenged.

A special challenge to the accounting community, she suggested, was to move from the stereotype of behind-the-scenes advisors to participating fully and taking the lead in improving Botswana’s entrepreneurial spirit, strengthening customer service and embracing globalization, which will spur Botswana’s “take-off.” Canavan stressed that the accounting professionals are not simply advisors, consultants, tax preparers, and bookkeepers but also entrepreneurs with the skill and experience to change for the better the entrepreneurial spirit in Botswana. The accounting industry is fundamentally about customer

service, therefore a successful accounting fi rm does not distinguish itself from its competitors based on debits and credits but rather on the delivery of its services, she added. Therefore, she continued, all industries such as retail, tourism, banking and others can benefi t from such knowledge of providing quality customer service.

Canavan encouraged those in the accounting profession to play an even greater role in fi nding solutions to current problems that are preventing Botswana from fulfi lling its economic potential. She said a lot of questions regarding Botswana’s economic future need to be answered through the profession, among them;

What can be done to help private businesses in Botswana generate the ideas, structures and practices needed to be successful?Are there patterns to the

problems you observe as you evaluate proposed projects, or practical ways to reduce some of the risks you perceive?Does the education system here prepare young citizens for success in the business world? If not, what can the accounting industry do to change this?How best can foreign direct investment and the issue of work permits for expatriates be balanced with the complex issues of citizen empowerment?

In her closing, Mrs Canavan implored those present to see and understand the real economic opportunities and obstacles in Botswana’s private sector. Her next port of call is to Stuttgart, Germany where she will also be joined by her husband Mr Mike Canavan, after serving the US Embassy for three years in Botswana.

BIA Secretariat

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6 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

T A X A T I O N

A lot of professionals in Botswana are either operating their professions as Sole Traders or

partnerships as opposed to companies. One wonders what difference this makes for tax purposes. Whether there is one medium of business that is better than the other. Some of the well known differences are as follows;

Partnership taxable income is shared amongst the partners using their profi t sharing ratio. When partners fail to pay tax, the tax authority is allowed by the Act to recover the liability from the assets of the individual partners.

On the other hand, if a company fails to pay its tax liability, the tax authority can recover the debt from the assets of the company and not go after the assets of the individual shareholders. The maximum amount that a shareholder can lose is therefore restricted to the share capital invested in the company.

Sole trader is a self employed. When companies and partnerships pay for personal expenses of directors/ partners, such expenditure is allowed as a deduction in the hands of the company/partnership, and taxable as a benefi t in kind for the director/partner. Sole trader is taxed in his own name and any payment by his business for his personal expense is taxed as a drawing by him under Section 50 of the Income Tax Act.

A company, from my opinion, still stands out as the best medium of business. It allows the owner manager to spend more liberally than other mediums and still claim deductions for tax purposes. However, the deductions that are of a more personal nature may still be traced to the benefi ciaries and taxed as benefi ts in kind.

Non-accounting professionals most of the time fi nd themselves caught unaware by the

Commissioner General (CG) because of the manner they keep their accounting records. Most of them don’t keep proper books of accounts, and as a result may not know whether they are making a profi t or not. Let alone substantiating the fi nancial statement fi gures submitted to the tax authorities, resulting in huge fi nancial losses. The following tips are meant to help them better prepare for the Commissioner General’s audits;

Keep every invoice or receipt collected from all business purchases and expenses. Absence of such receipts may result in the deduction being nullifi ed.

For all the cheque payments, write on the counter foil why you paid the cheque. You may need this information for preparation of fi nancial statements.

Keep a fi le of invoices sent to debtors, and transfer them to another fi le when payment has been received. If the service is provided for cash, keep a receipt book.

Keep a fi le of all purchases and be able to identify the ones you paid.

File by dates all the bank statements received for the business account.

Secure the services of Company secretaries or accountants to analyse the information for you. They don’t have to be on full time basis. To make it even better, make use of accounting packages that are in the market such as Pastel, ACCPAC, Quick Books, etc.

Be knowledgeable of the basics in taxation such as the due dates of your tax returns, penalties for late or non compliance. Where you engage tax consultants to prepare your fi nancial statements, ensure that you engage people who understand

their job. Section 135 (P/ships) and 136 (for companies) says everything done by precedent partner/public offi cer is assumed to be done with the full knowledge and consent of the taxpayer.

When the public offi cer terminates his services and withdraws from Commissioner General’s audits, a taxpayer cannot request for mitigation of penalties on the basis that the accountant or public offi cer misled him. Remember penalties for wilful default can go up to 200% of the tax that CG was going to lose as a result of taxpayer’s misrepresentations.

Record keeping, basic or proper is paramount to any business and especially for tax purposes. The CG may disallow any expense where the taxpayer fails to produce source documentation even where such expense may be genuine to the business. Failure to maintain proper records may attract penalties for negligence in preparing the tax returns.

This article is one of a series of tax awareness articles that are intended to open the eyes of fellow citizen entrepreneurs on taxation as an integral part of business that needs their attention. If any reader needs clarifi cation on tax matters for inclusion in future articles, please make it known to ceciliar@bac.ac.bw or call 71407640. Courtesy Of: Cecilia Ramabu.

NON-ACCOUNTING PROFESSIONALS AND TAXATION

Cecilia Ramabu says record keeping is paramount to any business

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T A X A T I O N

Introduction

When an investor decides to dispose of an investment in a private company

the challenge that he is normally faced with is whether to sell the shares in the company or sell the business as a going concern. Tax considerations should also be taken into account before one enters into such transactions as one may be faced with an unanticipated substantial tax liability at the end of the transaction.

In almost all of such transactions, there will be Income tax and VAT implications.

Income Tax

Sale of sharesIf a shareholder disposes of their shareholding in a Botswana private company, the gains from the disposal of shares are subject to capital gains tax. Only 75% of the gain is taxable. Companies will be liable to tax at 25%, thus the effective tax rate is 18.75% (i.e. 25% of 75%). Individuals are taxed based on tax tables as provided by Botswana Unifi ed Revenue Services.

Gains on the sale of shares listed on the Botswana Stock Exchange are exempt from capital gains tax.

Sale of business as a going concernThe gains on the sale of the business assets will be liable to either capital gains or income tax. Where capital

allowances were allowed on the assets being disposed of, any excess of the disposal value on the balance of cost unabsorbed (generally known as Income Tax Value) is taxable as a ‘balancing charge’ and the converse will be allowed as a tax deduction as a ‘balancing allowance’.

Gains on the disposal of assets which do not qualify for capital allowances are taxed as capital gains and these include gains on the disposal of intangibles such as goodwill and rights. Gains on the sale of intangibles are taxable in the same way as gains on sale of shares as explained above.

In calculating gains on disposal of immovable property, the cost of the immovable property including the cost of additions and improvements is indexed for infl ation to arrive at the taxable gain or loss. The loss is ring fenced and can not be set-off against other income or vice-versa.

VAT

Sale of shares The sale of shares is a fi nancial service and is therefore exempt from VAT. However, expenses incidental to the disposal of shares such as brokers fees, commission or any other charges are subject to VAT at 10%.

Sale of business as a going concernThe disposal of a business registered for VAT as a going concern, or part of a business capable of separate

operation is subject to VAT at 10%. A business is deemed to have been disposed of as a going concern where:-

All the goods and services necessary for the continuing operation of the business or that part of the business are transferred to the buyer andThe seller carries on the business up to the time the transfer to the buyer is effected.

However, the transfer of a business or part of a business may be zero rated if the following conditions are met:

Both the transferor and the transferee are registered for VAT andA notice is furnished to the Commissioner General within 21 days after the transfer takes place and is signed by both the transferor and the transferee

Conclusion It is therefore important that a shareholder should always carefully consider the tax and VAT implications of disposing a business before one enters into such transactions.

Gladys MakachiwaSenior Tax ManagerErnst & Young BotswanaRegistered Member BIA

Tax and VAT Implications on disposal of a business

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8 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

Multinationals predict shift to indirect taxes as global tax competition drives down corporate income tax rates; VAT errors now considered a greater risk than corporate tax errors, fi nds KPMG study

75 percent of global businesses • expect governments to rely more on indirect taxation in the next fi ve years

50 percent of global fi nance directors • rated errors in VAT compliance as the top global tax risk for their organization, signifi cantly ahead of corporate tax risks (38 percent)

82 percent of global businesses • prepared to give an estimate said their total annual VAT throughput was between US$200m and US$1bn

Three quarters of major global businesses believe that governments will rely more on indirect taxes

(such as VAT or general

sales taxes) in the future according to a worldwide survey of senior fi nance professionals at over 500 large corporations in 22 countries around the world commissioned by KPMG International.

The research, some of the most extensive KPMG has ever commissioned on this subject, helps to provide further evidence of the increasing importance of VAT and other indirect taxes globally. It also provides evidence on the level of VAT which global organizations are struggling to manage every day, with 82 percent of those who responded indicating that their organization’s annual “VAT throughput” was between US$200m and US$1bn per annum.

Niall Campbell, KPMG’s Global Head of Indirect Tax and partner in the Irish fi rm, said: “This survey, one of the largest and most comprehensive we have ever commissioned on large multinationals’ views on indirect tax, helps to confi rm what we have been seeing on the ground in recent years, namely that indirect tax is becoming increasingly important for global businesses as corporate tax rates decline.

“The levels of VAT which global businesses are now handling

are quite staggering and are clearly causing fi nance directors and tax directors’ real concern. As the cost of getting VAT wrong is so material, it makes sense that errors in VAT compliance have now been identifi ed as the biggest tax risk for these businesses - quite a shift in attitudes away from

the traditional focus on corporate and

income taxes.”

Other Key Findings

Complex VAT legislation is • the number one issue for global businesses in the next fi ve years, concerning two thirds of those interviewed, closely followed by compliance obligations (55 percent concerned) and the threat of penalties (45 percent concerned).

Investment in training and • technology key priorities for effective VAT management: 66 percent of global businesses believe that their organizations need to invest in training to raise employee awareness of VAT and 42 percent believe that investment should be made in improved VAT systems and technology.

Low level of awareness of • opportunities presented by VAT: only 11 percent of fi nance directors identifi ed VAT as a potential source of competitive advantage.

Niall Campbell continued: “Our research indicates that while businesses are now becoming increasingly aware of the scale of their global VAT risks and obligations, there is still a gap between awareness and actually investing in effectively managing the issues on a global basis. The results deliver a very strong message that if businesses want to adequately deal with the challenges which VAT is expected to present over the next fi ve years, they will need to seriously engage and invest in areas such as employee VAT awareness training, VAT systems and technology, additional internal resources and relationship building with tax authorities and regulators.

“There are also signifi cant opportunities which more effective global management of VAT can produce for businesses. However, our research shows that there is currently a low level of awareness of those opportunities, especially

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amongst the fi nance directors in the sample group. Combined with the strain on internal resources within many organizations, this may be causing signifi cant savings to be lost to many organizations.

“In addition, our research shows that the majority of businesses view VAT as purely a compliance obligation. However there appears to be a growing number of businesses that see VAT in a more external, market focused way. There is a clear competitive advantage to be gained by those businesses that can achieve an optimal VAT position when making a range of business decisions from product pricing, outsourcing and new business locations. As shareholders continually challenge management to improve business performance, fi nance directors who now engage and invest in managing VAT risks and realizing VAT opportunities can deliver real shareholder value.”

League table of VAT-friendlinessWhen asked which jurisdictions the respondents had found it most easy or most diffi cult to do business in from a VAT perspective, the UK came out as the most “VAT-friendly” with a net 10 percent of the sample saying it was easy. Italy was cited as the most diffi cult with the respondents remaining relatively neutral on other countries, according to the sample.

Notes to Editors KPMG’s survey was carried out by Lighthouse Global on behalf of KPMG International. It consisted of 521 telephone interviews in 22 countries around the world carried out during March and April 2008. All respondents were senior fi nance professionals at large multinational companies; 40 percent were fi nance directors and the remainders were senior tax or VAT directors or managers.

About KPMG InternationalKPMG is a global network of professional fi rms providing Audit, Tax and Advisory services. We operate in 145 countries and have 123,000 people working in member fi rms around the world. The independent member fi rms of the KPMG network are affi liated with KPMG International, a Swiss cooperative. Each KPMG fi rm is a legally distinct and separate entity and describes itself as such. KPMG International performs no professional services for clients nor, concomitantly, generates any revenue. About Lighthouse Global

Lighthouse Global provides independent business research and strategic analysis to businesses in the professional services, fi nancial services, and private equity, retail, media & technology sectors.

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The Botswana Institute of Accountants held its annual Stakeholders’ Cocktail on the 10th of July at the Gaborone

Sun Conference Centre. Unlike many cocktail events held in the past, this particular one also marked the launch, by the Institute of a very important outreach project-a career video.

The President of the Botswana Institute of Accountants, Mrs Priya Iyer, in her second term as President, explained that the video, code-named ‘The Making of an Accountant’ was propelled by the acute shortage of accounting professionals in Botswana and around the world. She said that, “BIA is aggressive in its outreach programme that is aimed at taking the profession to the people by trying to encourage a career in the accountancy profession.”

Mrs Iyer said through the video, the Botswana Institute of Accountants intends to create awareness and stimulate interest at the grassroots level, complementing this move by presenting in career fairs across the country. “The Institute has so far presented in fi ve career fairs in the past three months”, she noted.

Decrying the signifi cant shortage of accountants in Botswana, Mrs Iyer said, “The total number of accountants locally meets only about 20% of the projected demand over the next fi ve years. The shortage is alarming with 65% of the professional accountants being expatriates; this is why “The Making of an Accountant” is such an important video in Botswana.”

On other matters, Mrs Iyer revealed, “In 2007/8, Council increased the BIA staff complement by three to strengthen the Secretariat to meet the increasing demand

of the Institute to provide the required services and support to its members.” Furthermore, she added, “Council has approved the development of the new conditions of service, the new training policy, the new budget policy, revised fi nancial procedures and the new Institute wide procedures manual to enhance the operational effi ciency and effectiveness of the Secretariat.” Mrs Iyer mentioned the approval of the development of a new database management system and the revamping of the website to the highest standard possible as an initiative of the previous council.

Amidst all these achievements, Mrs Iyer reported that the current term has continued with the challenges from last year. Among the challenges, she said, “The Council is working on a new strategy document to be completed before year-end. The new strategy will incorporate new methods, techniques and approaches to running modern Institutes like ours. It will respond to both regional and global changes in the governance of professional Accountancy bodies and Regulators”, she added.

Adding his voice to the cause, the Chief Executive Offi cer of the Botswana Institute of Accountants, Mr Duncan Majinda, concurred with the President that the shortage of professional accountants was indeed a saddening reality. “Unlike other professions, the accounting profession is rewarding, and people should change their mindset and make careers in accounting,” Mr Majinda reiterated.

Mr Majinda stressed that the video aimed at changing people’s mindset, adding that they would rely on career guidance teachers to impart the message to learners. He lamented that Botswana realized

late that the accounting profession attracted less people, adding that currently expatriates prefer other destinations due to better working conditions.

However, in terms of regulation and professionalism standards Mr Majinda hinted that Botswana was doing quite well. He revealed that the International Federation of Accountants (IFAC) report had indicated that Botswana has been responding positively to the growth of the profession and regulatory practices.

Examples of such, he added, was the regulation of non-banking fi nancial institutions, Companies Act and the Financial Reporting Bill, which he hoped would be tabled before Parliament in the November Session.

The Botswana Institute of Accountants Stakeholders’ Cocktail is an annual event that primarily gives an overview of the Institute’s progress, challenges and introduces new board members to stake-holders.

BIA Secretariat

launched at the BIA Stakeholders Cocktail“The Making of an Accountant”

Career video,B I A N E W S

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B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 814

B I A S O C I A L E V E N T S - A G M D i n n e r i n p i c t u r e s 2 0 0 8

BIA Staff posing with the Guest Speaker Kathrine Canavan

BIA Executive Council, CEO posing with Guest Speaker

MC- Mokwena Morulane of Gope Exploration Company -CKGR

ACCA President Odirile Sebokolodi and a close friend

BIA President and US Ambassador to Botswana posing for a picture

BIA CEO sharing a light moment with past BIA CEO and wife

BIA Vice President seems to be saying I .......

Sarah Kenaape looking gorgeous

in her red mask

Kgomotso Pinkie and Kylie enjoying themselves

Auditor General Alternate- Dingaan Mabophiwa

BIA Treasurer-Vijay Kalyanaraman

15B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

S t a k e h o l d e r s C o c k t a i l 2 0 0 8 - B I A S O C I A L E V E N T SB I A S O C I A L E V E N T S - A G M D i n n e r i n p i c t u r e s 2 0 0 8

ACCA dignitaries enjoying dinner

BIA CEO handing a prize to one of the winners.

Former BIA CEO Tirtha Sen and wife

Some of the invited guests listening attentively to the speech

BIA Administration Manager Regina Ramanteba assisting CIMA President JB

Lukoma to pick a raffl e ticket

Itumeleng, Mokeresete and Keneilwe of BIA

Who said accountants cannot dance?

Vijay BIA Treasurer posing with colleagues

BIA President Priya Iyer in mask

16 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

B I A S O C I A L E V E N T S - S t a k e H o l d e r s ’ C o c k t a i l i n p i c t u r e s 2 0 0 8

1 2 3

4 5 6

7 8

9

10

1211

1 Mike Lesolle (BAC), Priya Iyer (BIA President), Ayub Wangera (Education and Training Committee Member)

2 Some of the invited guests

3 Benedicta Abosi of KPMG, also a PR Committee Member

4 BAC Director of Academic Affairs David Cropper

5 Guru Gurumoorthi of Guru Group with Grant Thornton Director Girish Ramakrishna

6 Duncan Majinda (BIA CEO)addressing guests

7 Guru Gurumoorthi laughing with the BIA President

8 JB Lukoma (CIMA President) chat-ting to the BIA CEO and others

9 Favor Marebole of CEDA, Tumie Mbaakanyi of Mmemme CPA and JB Lukoma, CIMA President.

10 Ms Esther Kanaimba of Debswana with BEDIA representative Lamek Nthekela

11 Auditor Generals’ representatives and BIA members Dingaan Mabophiwa and Casely Nettey

12 Angelinah Matthys of the PR Committee

P I C T U R E C A P T I O N S

TERTIARY EDUCATION COUNCIL

By 2015, the Tertiary Education Council will have developed a relevant, dynamic, accessible, equitable and international competitive tertiary education system.

V I S I O N

M I S S I O NThe mission of the Tert iary Educat ion Counci l is to plan, develop and co-ordinate awel l-resourced qual i ty tert iary educat ion system contr ibut ion to Botswana becoming

a knowledge society.

T E R T I A R Y E D U C A T I O N B E N E F I T S A N D B E N E F I C I A R I E S

T H E S T A T E T H E I N D I V I D U A L

* HIGHER SALARIES AND BENEFITS

* EMPLOYMENT

* HIGHER SAVINGS LEVELS

* HIGHER PENSIONS

* IMPROVED WORKING CONDITIONS

* PROFESSIONAL MOBILITY

* DECREASED RELIANCE ON

GOVERNMENT FINANCIAL SUPPORT

* IMPROVED CAREER PROSPECTS

* IMPROVED JOB SATISFACTION

* IMPROVED HEALTH AND LIFE

EXPECTANCY

* IMPROVED QUALITY OF LIFE

* ENHANCED OPPORTUNITIES FOR

SOCIAL MOBILITY OF CHILDREN

* BETTER DECISION MAKING

* IMPROVED PERSONAL STATUS

* IMPROVED LEISURE TIME

* DEVELOPMENT OF INDIVIDUAL

CAPABILITIES AND POTENTIALS AND

ACHIEVEMENT OF PERSONAL

FULFILMENT

* PROBLEM SOLVING BASED ON

REASONED ARGUMENT AND

DISCOURSE.

EC

ON

OM

IC

T H E S T A T E T H E I N D I V I D U A L

* HIGHER SALARIES AND BENEFITS

* EMPLOYMENT

* HIGHER SAVINGS LEVELS

* HIGHER PENSIONS

* IMPROVED WORKING CONDITIONS

* PROFESSIONAL MOBILITY

* DECREASED RELIANCE ON

GOVERNMENT FINANCIAL SUPPORT

* IMPROVED CAREER PROSPECTS

* IMPROVED JOB SATISFACTION

* ECONOMIC GROWTH

* POVERTY REDUCTION

* SUSTAINED INCOME GROWTH

* SHIFT TO A KNOWLDGE BASED

ECONOMY

* RESEARCH AND INNOVATION SYSTEMS

* FOREIGN DIRECT INVESTMENT

* EMPLOYEE PRODUCTIVITY

* INCREASED TAX REVENUE

* INCREASED CONSUMPTION

* INCREASED WORK FORCE FLEXIBILITY

* ENTREPRENEURSHIP

* REDUCED CRIME

* INCREASED COMMUNITY ENGAGEMENT

* IMPROVED CIVIL SOCIETY

* SOCIAL COHESION

* INCREASED OPEN-MINDEDNESS AND

TOLERANCE

* BUILDING AND MAINTAINING DEMOCRATIC

VALUES

* IMPROVED ABILITY FOR SOCIETAL CHANGE

* BUILDING A DISTINCT NATIONAL AND

GLOBALLY CONNECTED IDENTITY

* SHIFT TO A KNOWLEDGE BASED SOCIETY

* INFORMED CRITICISM, DEBATE AND

DIALOGUE.

The best investment that any parent, student, family, employer and government can make is investing in a globally competitive quality and relevant education of its people to the highest level possible. An educated and highly skilled population is a major asset of any nation’s regional and international competitiveness to create wealth and prosperity by being creative, innovative and entrepreneurial.

It is knowledge, skills and ideas rather than natural resources and minerals that determines a country’s economic success. Therefore it is knowledge and getting the price right rather than natural resources and traditional labour skills that are key to economic success and a prerequisite for global competitiveness.

Tertiary Education is a pre-requisite for boosting productivity, competitiveness, innovation, job creation, economic growth across sectors, eradicating poverty and HIV/AIDS, increasing skills, assimilating global knowledge in science and technology, faster techno-logical catch-up, and faster economic success.

Higher education produces benefits for both the state and the individual. These include better employment prospects, higher salaries, greater ability to save and invest as well as improved health and quality of life. The other social benefits are reduced crime, foreign direct investment (FDI), job creation, higher earnings tolerance and increased tax revenues and greater consumption.

The Tertiary Education Council is working to create opportunities for access to quality and relevant tertiary education for all Batswana.

SO

CI

AL

Private Bag BR 108, Gaborone, Botswana. +267 3900679 +267 3901481 www.tec.org.bw

Transforming Tertiary Education in Botswana

18 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

John is a Fellow of the Association of Chartered Certified Accountants (FCCA) in the U.K. He holds a Masters Degree in Business Administration,

a Bachelor of Commerce Degree in Accountancy and a Diploma in Business Studies. He has acted as Guest Lecturer for the MBA final year class in strategic management at the University of Botswana. John worked as Audit Manager for KPMG Botswana before establishing one of the highly successful audit firms and consulting companies in Botswana.

John is a business entrepreneur and business strategist with special interest in corporate strategy formulation, policy, finance and strategy implementation. As an entrepreneur, he is the founder and Managing Director of Global Business Network, one of the fastest growing financial and management consulting firms in Botswana and Malawi. He is also the Founder and International President of International Centre for Strategic Leadership, a South African based institute focusing on strategic leadership development for business, political and spiritual leaders in Africa and the world. He is currently the National President for International Christian Chamber of Commerce in Botswana.

John is also the Founder and Managing Partner of Kauya and Partners, Certified Public Accountants in Botswana, one of the fastest growing auditing firms in Botswana. John is also a Council member of Botswana Institute of Accountants, the professional body that regulates the audit and accountancy profession in Botswana. He has chaired the Technical Committee, one of the most powerful committees of the Institute for two terms including the current one. Among the audit clients he has served are Botswana Institute of Accountants, Law Society of Botswana and SADC Lawyers Association, Arab Contractors Botswana, Botswana Couriers. He is also a writer in business leadership, finance and entrepreneurship. He serves in various capacities in boards of

directors in Botswana, Malawi and South Africa.

Global Business Network provides consulting services to Debswana (DeBeers), SADC Secretariat, parastatals and insurance companies in Botswana and South Africa.

In terms of Christian ministry, he has founded a Christian based leadership development trust called Destiny Christian Centre which is working with the corporate leaders in business and governments in leadership transformation initiatives and other social initiatives in Africa.

John is married to Priscilla, also a Fellow Chartered Accountant and an Audit Partner for Kauya and Partners. Priscilla is the Finance Director of Global Business Network. She worked as Audit Manager for Deloitte and Touché before co-establishing Global Business Network and Kauya and Partners. John and Priscilla have two children, Joy (10 years) and John Junior (7 years).

JOHN BINNIE KAUYA, MBA, FCCA, FCPA (Bots), B.Com (Acct),

Diploma in Business Studies

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19B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

L E A D E R S H I P

By D D Majinda

Part 1 IntroductionThis paper examines the leadership process from a number of perspectives. It begins by drawing a line between leadership and management through a number of defi nitions, followed by the leadership perspective of the Bank of Utopia as represented by the CEOs’ offi ce, the part of this Bank that has been chosen to illustrate the leadership style of senior managers. Natasha and Sandra, the two executive offi cers with contrasting styles are used extensively throughout the paper to compare and contrast their styles with the ideas covered in the theories of leadership. A number of different leadership styles and theories are examined and contrasted with the Bank of Utopia situation.

Leaders are like generals and managers are like captains. The former goes much deeper than ensuring that battles are won, they win wars; while the latter tends to look at a battle at a time. A leader can therefore, make or break an organisation as it will be seen from the Bank of Utopia Case which is a true story but the names have been changed to protect the identities of the individuals.

From the behavioural side, the paper touches briefl y on Fleishman and Stogdills’ concepts of consideration and initiating structure and contextualising this to the Bank by showing where Natasha and Sandra fi t in. Black Mouton‘s managerial grid which touches on the two dimensions of the concern for production and concern for people is also considered. The paper goes on to look at the contingency theories and the Graen’s Dyad model of differential treatment of subordinates by the leader. Again, Natasha and Sandra are heavily drawn in to put the discussion into the Banks context.

The paper concludes by observing that there is no universal leadership style that can be prescribed for managers but instead, a situational approach is probably the best route to take.

DEFINITIONSThere is a common misconception that leadership and management means the same. To think this is so would be over simplifi cation. Management tends to involve a preoccupation with the here- and now of goal attainment (Bryman, 1986 p.6). According to Henri Fayol management involves forecasting, planning, organising, co-ordinating, commanding and controlling. While a leader could also be a manager and therefore, perform these management activities, leadership however, as we shall see from the defi nitions given below, is clearly something much more than the mere discharge of administrative functions.

James MacGregor Burns in his book leadership draws two lines in his views of leadership. He talks of transactional and transforming leadership. Transactional leadership could be equated to what has been described above as management, while transforming leadership is much broader as it shall be seen from the defi nitions below:

According to Burns “Transforming leadership occurs when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality. Their purposes, which might have started out separate but, related become fused. Power bases are linked not as counterweights but as mutual support for common purpose. Such leadership is elevating, mobilising, inspiring, exalting, uplifting, exhorting and evangelising. The relationship can be moralistic, of course. But transforming leadership ultimately becomes moral in that it raises the level of human conduct and ethical aspiration of both the leader and the led, and thus has a transforming effect on both…

Transforming leadership is dynamic in the sense that the leaders throw themselves into a relationship with followers who will feel elevated by it and often become more active themselves, thereby creating new cadres of leaders.”The work of the psychologist David McClelland, notably in Power: the Inner Experience, as quoted in Thomas

J. Peters and Robert H. Waterman, Jr- In Search of Excellence, p. 84, provides an experimentally based description of the leadership process as follows:

“We set out to fi nd exactly, by experiment what kinds of thoughts the members of an audience had when exposed to a charismatic leader. They were apparently strengthened and uplifted by the experience; they left more powerful, rather than less powerful or submissive…. He does not force them to submit and follow him by the sheer overwhelming magic of his personality and persuasive powers…. In fact, he is infl uential by strengthening and inspiring his audience.

The leader arouses confi dence in his followers. The followers feel better able to accomplish whatever goals he and they share.

A more shorter and simplifi ed defi nition is by Bryman (1986) “Leadership” is the creation of a vision about a desired future state which seeks to enmesh all members of an organisation in its net.”

All of the above defi nitions of leadership try to encompass a visionary perspective, empathy, inspirational capacity, integrative characteristics, amenability to change and singleness of purpose. An effective leader should therefore, be able to generate as many of these features as possible. In his early days, Alexander the Great was a truly phenomenal leader worshipped like a god by his followers. However as he became more and more powerful, he subordinated his followers’ interests to his greed and consequently lost their respect and their obedience. Even his most trusted Public Relations Offi cer and historian revolted against him and refused to worship him like a God albeit with fateful consequences as Alexander tortured him to death.

Bank of utopia- leadership perspectiveLike many other organisations all over the world, the Bank has been heavily infl uenced by the post war human relations movement in industrial sociology which advocated participative management. Every

Leadership: A Creature of Many faces

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L E A D E R S H I P :

GABORONE- Money laundering can weaken democracy, peace and stability in Botswana,

though it is not given adequate attention, according to the Director of Directorate on Corruption and Economic Crime (DCEC), Mr Tymon Katlholo.

Speaking during the launch of the Institute for Security Studies (ISS)/DCEC report on Trends of Money Laundering in Botswana, Mr Katholo said money laundering had signifi cant impact on the country’s growth.

He said money laundering in Botswana was a problem that had not been taken as serious as it should, adding that it was still considered to be a problem facing other countries.

He said evidence from the research had shown that money laundering was indeed prevalent, saying researchers were able to identify the causes of the most often encountered forms of money laundering.

He said it was important to note that all efforts dealing with money

laundering included in the research had signifi cant relevance to local policies.

In addition, he said the general and specifi c recommendations emanating from the research were intended to inform policy makers to safe guard Botswana.

According to Mr Katlholo, DCEC found it opportune to convene with South Africa’s ISS to adequately understand and study money laundering and its trends in Botswana.

For her part, DCEC deputy director Mrs Rose Seretse said crime of any form needed to be adequately counter attacked.

Mrs Seretse said lack of adequate training and education on money laundering issues, lack of adequate structures and diffi culty in penetrating money laundering and other criminal syndicates were their major setbacks.

She said implementation of the report recommendation would assist any willing organization to empower its staff and enlighten them on money

laundering.Mrs Seretse said it would be

unfortunate for DCEC and ISS to devote their valuable time to a research and had it not implemented.

For his part, ISS senior offi cial Mr Charles Goredema said money laundering was an escalating crime in Botswana.

Mr Goredema said through the research they had observed various rampant natures of money laundering transactions outside the reach of banks in Botswana.

He said the research symbolized the beginning of how money laundering works, adding that it was important to periodically study money laundering cases.

The Institute for Security Studies is a regional institute established in South Africa. The institution has been studying the nature and trends of money laundering cases in most Southern African countries.

Article courtesy of BOPA

MONEY LAUNDERING THREATENS DEMOCRACY

management course recommended by the Bank will have some emphasis on participative styles of management. This also stems from the fi ndings of the Research carried out by French and Coch in Virginia pyjama manufacturing which identifi ed this style of management as most likely to guarantee a happy harmonious and motivated workforce; the result being increased productivity. Despite these infl uences, it would be incorrect and indeed dangerous to make characterisations and generalisations that senior managers in the Bank adopted participative styles of leadership.

For the purposes of this paper, the CEOs’ offi ce has been chosen as a basis of our discussion. The top management structure of the Bank (CEOs’ offi ce) see diagram 1:

The paper concentrates primarily on Natasha and Sandra because of their contrasting styles of leadership. David is an expatriate and an accomplished Doctor of Economics. He is really what Douglas McGregor in his book,

“The Human Side of Enterprise” calls the professional specialist. He has great confi dence in the objectivity of his scientifi c techniques and is therefore keener in delivering high quality research bulletins and less interested in organisational politics and leadership issues. So he will receive no further consideration in this paper.Natasha is quite forceful and does not shy away one bit from authoritarian rule when necessary. Her hard line approach has earned her the nickname “The Iron Lady” in comparison with

the image of Margaret Thatcher during her term as Prime Minister of Britain. She is average in intelligence, started working for the Bank as a personal secretary, worked her way up to Director, Deputy CEO, and has recently been promoted to CEO of the Bank.

Sandra on the other hand is very intelligent as evidenced by her excellent performance at graduate and postgraduate studies. She is very soft and friendly and tends to involve her subordinates signifi cantly in decision making. She is liked by many people in the Bank and could be compared to the biblical ‘Good Samaritan’. In a hypothetical leadership continuum with the extremes of democratic and autocratic styles, Natasha would be on the autocratic end while Sandra would be towards the democratic extreme.

This background on Natasha and Sandra is important, as it shall be referred to throughout the rest of the paper. To be continued in Part 2 in the next Newsletter

continued from page 19

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21B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

B I A M E M B E R S H I P M A T T E R S

Boemo Gaolathe explains Registered Membership category of the Botswana Institute of Accountants!

The Botswana Institute of Accountants has four levels of membership namely;The Licentiate Level (LBIA)

The Registered Level (RBIA)The Associate Level (ACPA)The Fellow Level (FCPA)

In the previous newsletter I wrote about the licentiate category (LBIA), explained what it is all about, the requirements for membership at this level and the benefi ts of membership.

In this newsletter, I will be looking at the next level of registered (RBIA).

RBIA stands for registered member of the Botswana Institute of Accountants. It is the second lowest of the four categories of membership of the Institute. It’s a stepping stone to gaining the associate ship membership of the Institute.

Once you have qualifi ed as a CIMA Finalist and ACCA Affi liate or gained full membership of the Institute of Chartered Secretaries and Administrators, you are eligible to become a registered member of the Institute and may use the designatory letters RBIA.after your name. RBIA ensures that your integrity is protected and your competences are developed and recognized.

Using RBIA after your name will give you the recognition the letters deserve. These letters shows that you do not only have the qualifi cations but also have relevant practical experience that you attained through the continuous professional development undertaken through the BIA CPD programme.

What are the requirements for one to become an RBIA?

There are three requirements to fulfi ll in order to gain RBIA;Firstly, you need to have passed CIMA ACCA or CA examination or gained CIS full membership.

Secondly you need to have a minimum of three years relevant practical experience either obtained full time or part time. The work experience should demonstrate that you have put into practice the accounting skills that you obtained through studies.

Thirdly, you need to provide a professional reference confi rming your suitability for BIA membership. Your references should come from two members of the Institute.

RBIA Benefi ts.

Status

Having gained the REGISTERED Membership of the Institute you can use the letters RBIA under your name. This letters give you status, provide instant recognition of you skills and demonstrate that you have an internationally recognized level of membership of the Institute.

Continuous Professional Development (CPD)

Continuing Professional Development (CPD) is the continuous maintenance, development and enhancement of the professional and personal knowledge and skills which members of the BIA require throughout their working lives. CPD is the learning we all need to do, to stay competent and to develop new skills to be effective in our jobs and careers. CPD, therefore, is something which BIA members will almost certainly already be doing as part of their working lives.

Other Benefi ts

Have obtained the membership you will gain asses to the following;

Higher credit Limit with - FNBCompetitive Insurance rates - with Dynamic Insurance BrokersTax updates through - Emails to Tax Consultants20 percent discount rate - with Executive Gym.

Registered Membership Category of BIA

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B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 822

S T A F F P R O F I L E

NEW STAFF MEMBER Oupa Gaofi se joins Botswana Institute of Accoun-tants as a Customer Service Offi cer. Oupa holds a National Diploma: Public Relations Management as well as a Baccalareus Technologiae (Degree) in Public Relations Management from the Nelson Mandela Metropolitan University in Port Elizabeth, South Africa. He previously worked for the University as a Public Relations Intern on one of its campuses and upon completion, worked briefl y for Barclays Bank Botswana in the Sales Department.

LIFE’S LESSONS

My mother only had one eye. I hated her. She was such an embarrassment. She cooked for students and teachers to support

the family.

There was this one day during elementary school where my mother came to say hello to me. I was so embarrassed. How could she do this to me? I ignored her, threw her a hateful look and ran out.

The next day at school one of my classmates said, “EEEE, your mom only has one eye!” I wanted to bury myself. I also wanted my mother to just disappear. I confronted her that day and said, “If you are only going to make me a laughing stock, why don’t you just die?”

My mother did not respond. I did not even stop to think for a second about what I said, because I was full of anger. I was oblivious to her feelings.

I wanted out of that house, and have nothing

to do with her. So, I studied very hard, got a chance to go abroad to study. Then I got married. I bought a house of my own. I had kids of my own. I was happy with my wife, my kids and the comforts. Then one day, my mother came to visit me.

She had not seen me in years and she did not even meet her grandchildren. When she stood by the door, my children laughed at her, and I yelled at her for coming over uninvited. I screamed at her, “How dare you come to my house and scare my children! Get out of here! Now!”

To this my mother quietly answered, “Oh, I’m sorry. I may have got the wrong address,” and she disappeared out of sight.

One day, a letter regarding a school reunion came to my house. So I lied to my wife that I was going on a business trip. After the reunion, I went to the old shack just out of curiosity.

My neighbours said that she died. I did not shed a single tear. They handed me a letter that she had wanted me to have.“My dearest son, I think of you all the time. I

am sorry that I came to your house and scared your children. I was so glad when I heard you were coming for the reunion. But I may not be able to even get out of bed to see you... I am sorry that I was a constant embarrassment to you when you were growing up.

You see, when you were very little, you got into an accident, and lost your eye. As a mother, I could not stand watching you having to grow up with one eye. Therefore, I gave you mine.I was so proud of my son who was seeing a completely new world for me, in my place, with that eye.

With all my love to you Your Mother.”

MORAL: Always tell someone that you love them because you never know what day will be their last, or your own. Always seek to resolve your problems or disagreements with loved ones, because if either of you should pass on before, the one who is lef t behind will have the rest of their life to ponder those unresolved feelings but will never find closure. And closure usually brings PEACE…

JOKE OF THE WEEK

A man and his wife received a letter from their daughter who went to study overseas.

My beloved parents, I miss you so much. I do not know when I am coming home, but it seems not anytime soon. It breaks my heart to think that by the time I get back, you will be too old. So enclosed please find a bottle of a potion that I have invented. It will make you young, so when I return you will be the same age as I left you. NOTE: “Please take only one drop”.

So they opened the envelope and in it, there was a bottle with a red potion. The husband looked at the wife and said, “You go first.”

So the wife opened the bottle and took a drop, thereafter the husband followed. Indeed, they do turn 5 years younger.

A year passes and the daughter returns home to find her mother young and beautiful, carrying a baby on her back. The mother proceeds to tell her daughter how the potion worked and made her look young.

The daughter is delighted and asks about her father. “Your father, my child, got so jealous that I was young and beautiful so he drank the whole bottle.”“So where is he?”

“Oh, that’s him I have on my back.”Ha! Ha! Ha! Ha! Ha! Ha! Ha!

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AAT APPROVED ASSESSMENT CENTRES IN BOTSWANA

GABORONE

Botswana Accountancy CollegePrivate Bag 00319GaboroneT: +267 3953062Centre code: 000503

Damelin BotswanaPO Box 80348GaboroneT: +267 3190811Centre code: 0010220

Decatic Commercial SchoolPrivate Bag 00286African MallGaboroneT: +267 3906496Centre code: 001944

Gaborone Academy of EducationPO Box 601016 G/WestKopanyo House AnnexPlot 5131 Station AreaOpposite Min of AgricultureGaboroneT: +267 3167046Centre code: 0010042

Gaborone Institute of Professional StudiesPlot 685 and 689 Botswana Road, Main MallPO Box 1299, GaboroneT: +267 3906444Centre code: 000614

Institute of Development ManagementPO Box 1357GaboroneT: +267 3952371Centre code: 001777

Pathfinder Business SchoolSuite 32 Embassy ChambersThe Main MallPO Box 501564GaboroneT: +267 3911251Centre code: 0010344

FRANCISTOWN

Botswana Accountancy CollegeFrancistown Campus8th Floor Barclays Plaza

Blue Jacket StreetFrancistownT: +267 2410558Centre code: 002202

Gaborone Institute of Professional StudiesPO Box 30228FrancistownT: +267 2441673Centre code: 0010225

LETLHAKANE

Boteti Brigade Development TrustPO Box 231LetlhakaneT: +267 3190811Centre code: 0010343

LOBATSE

Gaborone Institute of Professional StudiesPlot 115640Near Crescent SchoolPrivate Bag 18LobatseT: +267 3906556Centre code: 002383

Date Event Sponsor Venue Contact Mailing address BIA Coordinator

20 Sept 2008 Volleyball BDO BNPC Ntu kntu@bdo.bw Kylie

x x Oct 2008 Cricket GT Acumen Cricket Club Sumesh sumesh@grant thornton.co.bw Gaositwe

01 Nov 2008 Kgale Hill KPMG Kgale Hill Masa Selerio masa.selerio@kpmg.bw Sarah

07 Nov 2008 Pub Quiz Guru Group Maharaja Elizabeth Chikerema elizabeth@gurugroup.bw Kgomotso

To be confirmed Athletics Ernst & Young x x x x x x x Giselle Mor ta Giselle.Mor ta@za.ey.com Itumeleng

In this professional life, we attend seminars, workshops, team building exercises and in-house trainings in order to continuously

develop our careers and fi nd solutions to managing our bosses, offi ce rage, and offi ce management. Boemo Gaolathe had a discussion with Michael D’souza campus manager at Damelin to get his personal view on how to manage one’s boss and avoid offi ce rage.

It is nice to imagine that the success of your career rests upon your basic competence at doing your job, but Michael thinks that is only half the picture. Your promotions and rewards depend directly on how well you can manage your boss. In addition to performing well, you have to make sure the boss knows about all the things you are doing right, while also building a personal rapport so that he/she will keep your interests in mind.

There are certain things you will need to know: -

You cannot buy respect. Be sure you schedule preparation time before meeting with the boss. If your boss is truly evil getting closer is a bad idea.Keep track of everything you have accomplished or initiated lately, so that you are prepared to answer your boss on how things are going.Keep your ego aside if you want to be able to understand the qualities and objectives your boss values most.

Make “KEEPING THE BOSS IN THE LOOP’ a regular activity. Reassure your boss that you know what you are doing. The secret fear of every boss is that employees are screwing up and either not telling anyone or even worse not aware there is a problem. Answer your boss’s queries with grace, he will assume you are competent but if you hesitate or evade then he will assume all your work is slipshod. One of the dumbest moves you can make is to enter your boss’s

offi ce unprepared.Your boss expects from you:Credibility, Professionalism, Integrity, Care and Knowledge. You should pursue goals of important priorities. Your most important task is to market your services to your immediate boss.

Understand where he came from in order to know what he expects. Deliver what the boss wants-even before he knows he wants it. When appropriate, fi nd opportunities (such as lunch or offsite meetings) to express a healthy curiosity about his experiences as they fi nd that inquiry valuable because it provides an opportunity to explain the logic of their decision-making process.

However, subordinates must also sometimes understand that when the boss has a lot of work, he might become emotional and it is important to understand communication techniques.

BOEMO B GAOLATHE

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24 B o t s w a n a I n s t i t u t e o f A c c o u n t a n t s , V o l u m e 3 , 2 0 0 8

I N T E R N A T I O N A L N E W S

Botswana has enjoyed healthy economic development compared to its neighboring countries. In fact, it has one of

the fastest per capita income growth rates in the world. The Botswana government can mainly thank the booming mining industry for this; having a 50 per cent share in the only diamond mining company in the country generates more than one-third of revenue and makes diamonds responsible for more than three-quarters of the country’s exports. Careful management of these funds, and a lack of corruption, have also helped to transform the country from one of the poorest in the world.

However, as with all natural resources, the diamond mining industry is not sustainable in the long-term, and it is predicted that Botswana’s diamond supply will be depleted in the next 20 to 25 years. The pressure is on to economically diversify because, if it doesn’t, its gross domestic product could fall considerably. The speed of economic growth in Botswana has highlighted the need to regulate the activity of accountants. Financial management is at the heart of economic growth and this cannot be achieved with unskilled accounting staff. Until the late 80s, accountants in Botswana were governed and monitored on an individual basis by their domestic professional institutes. The Botswana Association of Accountants existed, but this had no legal status and only acted as a centre to coordinate the administrative and social affairs of accountants.

In 1988, the Accountants Act was introduced to provide legal regulation, followed by the establishment of the Botswana Institute of Accountants (BIA) in 1990. BIA’s mission was to be the principal professional accountancy body in Botswana, and to ensure that its members kept up with the high international standards. A democratically elected Council was put in place to manage its affairs and to ensure that members adhered to a strict code of ethics.

Since then, the government has been working towards broadening the economic divide, especially in the areas of agriculture, tourism, fi nancial services and manufacturing.

“The economy has grown immensely, and with it demand for accountants has increased. There is a drastic shortage of accountants in Botswana and around two-thirds of accountants here are expatriates,” explains Duncan Majinda, Executive Offi cer at BIA. “There is new legislation coming into force which will transform the way businesses are run. Organisations will need more technicians to prepare fi nancial statements. We have found it diffi cult to produce enough local accountants and the potential impact of this shortage is that the quality of fi nancial reporting is at risk.”

It was apparent that there was a need in the fi nancial services sector for a qualifi cation that bridged the gap between leaving school and chartered accountancy. The Association of Accounting Technicians (AAT) Accounting Qualifi cation provides the practical skills needed to work in fi nance and accountancy, and accounting technicians work in all sectors of the economy. So in January

2001, the BIA and the AAT launched AAT Botswana.

Before then, the AAT had been made available through the Botswana Accountancy College, but this development made the process much more streamlined. AAT Botswana provides the payment of fees and subscriptions in Pula instead ofPound Sterling, modern commun-ication links with the AAT’s headquarters in London, pre-enrolment advice and guidance on courses and training, and the handling of queries from student members, training centres, employers and the general public.

Duncan Majinda fi rst heard of the AAT when he was working as an Accounts Clerk in Gaborone. “An issue arose that had complex implications which were explained to us by a South African colleague. I was impressed by his range and depth of knowledge and he said that it was down to his chartered accountancy qualifi cation,” he said.

Initially, Duncan had planned to begin studying for a chartered qualifi cation, but deciding that a good grounding would be essential,

BOTSWANA’S BOOMThanks to its growing economy… great things are happening in Botswana, writes Matt Horsburgh

Duncan Majinda with Nilima Bhagi

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he began studying with the AAT. “When I eventually embarked on my chartered qualifi cation, many of the other students held degrees, but [I found that] there was no difference between us because the AAT had prepared me so well. It’s the best thing I’ve done and doesn’t just prepare you for a qualifi cation; it prepares you for a career.” Once qualifi ed, Duncan worked his way up the career ladder to become the Chief Accountant of the Central Bank of Botswana, dealing with Fund Managers across Europe and the USA, and briefi ng the Cabinet about the performance of the country’s foreign reserves. After completing an MBA in the UK, Duncan set up his own business, but realised that he missed the profession too much.

Duncan is now Executive Offi cer for BIA and is responsible for regulating and monitoring Botswana’s auditors. His role is also to provide advice on company and tax law and international fi nancial reporting standards. His AAT qualifi cation is

very dear to his heart, and he favors the AAT for his staff.AAT Botswana now has 13 approved assessment centres across the country, with nine in Gaborone, two in Francistown, one in Letlhakane and one in Lobatse. As of January 2008, there are 2,583 AAT students and 127 full AAT members, and there are plenty of success stories.

In 2007, Nilima Bhagi became the youngest person in the world to qualify with the AAT when, aged 16, she completed the qualifi cation. She studied in Gaborone and unusually took all her exams in two sittings, meaning that she qualifi ed in 16 months – less than half the time-frame that is recommended. Usually students take three years to qualify, so this is an excellent achievement.

“I had never studied accounting before, but I liked the subject and the AAT made it easy for me,” says Nilima. Talking about the important role accounting plays in the economy of a country, she added: “I did

the AAT because I wanted to be a chartered accountant, but people need to recognise that accounting is a necessity, not just a qualifi cation. Businesses are reaching new heights and the competition is tough, but accounting has become the backbone of all these organisations.”

Jane Scott Paul, the AAT’s Chief Executive Offi cer in the UK, has been involved in the delivery of AAT Botswana since day one. She said: “What has happened in Botswana over the past four decades is very inspirational,” she says. “There has been a great development, not just of the educational system, but of the entire country and it is something that the AAT is proud to be a part of. Since its humble beginnings, the AAT in Botswana has moved on immensely, and I’m pleased to see that it is producing outstanding results.”

More information about the AAT can be found at: www.aat.org.uk. Matt Horsburgh is the AAT’s PR & Communications Executive.

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KPMG is a global network of pro-fessional firms providing Audit, Taxand Advisory services. We oper-ate in 145 countries and have123,000 people working in mem-ber firms around the world. Theindependent member firms of theKPMG network are affiliated withKPMG International, a Swiss coop-erative. Each KPMG firm is a legal-ly distinct and separate entity anddescribes itself as such.

KPMG International performs noprofessional services for clientsnor, concomitantly, generates anyrevenue.

KPMGPO Box 1519Gaborone

Tel: +267 391 2400enquiries@kpmg.bw

KPMG in Botswana

Ms Jane Scott Paul, Chief Executive of the Association of Accounting Technicians (AAT) in the UK honoured.

In recognition of her ‘services to the accountancy profession’ Ms Jane Scott Paul, Chief Executive of the Association of Accounting

Technicians (AAT) in the UK, has been conferred the OBE (Order of the British Empire) in Her Majesty the Queen’s Birthday Honours List 2008, announced on the 14th June 2008.

Over a twenty year period Jane Scott Paul, as Director of Education and later Chief Executive of the AAT, has pioneered the introduction of large scale, skills-based training for accounting technicians – including the development of a respected vocational

pathway to chartered accountancy that has increased accessibility to the accounting profession for learners of all ages, providing an alternative to the traditional graduate-entry route.

This innovative vision and leadership has been recognized both in the UK and outside, with Jane asked to contribute to and share her expertise with those developing the technician level of the accounting profession in countries as diverse as South Africa and Nepal, and with the International Federation of Accountants and the Eastern Central and Southern African Federation of Accountants.

The Birthday Honours list traditionally pays tribute to outstanding achievement and service across the entire community. In total this year, 959 people (including 393

women) have been recommended to the Prime Minister for an award with many of those honoured involved in charitable or voluntary work, or undertaking extra-curricular activities linked to their professions.

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HOI N T E R N A T I O N A L N E W S

THE INSTITUTE OF INTERNAL AUDITORS BOTSWANA

The Institute of Internal Auditors Botswana was registered on the 9th of December 1996 to further the objects of the mother body locally. “The Institute clearly evolved as an answer to the growth of internal auditing and as a response to new management needs resulting from the increasing size and complexity of corporate and government organisations as well as new developments like corporate governance principles. Thus the Institute is responsible for amongst other things:• The promotion and development of the practice of internal auditing,

and setting of the standards for the practice of internal auditing which every practicing Internal Auditor has to follow to the letter.

• The promotion of knowledge and information concerning the practice of internal auditing.

• Assisting members to obtain appropriate training through available training programmes in the region, as well as providing an examination centre to assist Auditors writing the professional Certifi ed Internal Auditor (CIA) qualifi cation.

• For the purposes of achieving, carrying out or furthering its objects, the institute needs to cooperate or associate with other professional bodies.

Benefi ts of IIA membership amongst others are:

• Reduced registration fees for IIA seminars and conferences, as well as fees for sitting for the CIA qualifi cation and other costs.

• Access to customized on-site seminars for corporations, government agencies, and IIA institutes internationally.

• Allows for benchmarking through the net with other Internal Auditors across the globe.

• A visit to the IIA Web-based site enables one to learn more about their newest offerings as well as updates in the professional standards and ethics.

IIA Botswana Board of Governors 2008/09

President – Lesedi M. LesetediVice President and Chairman Training – James J. TinarwoSecretary – Gaamangwe LebeleTreasurer – Pelotlhomogi B. RantsheoChairman Publicity and Fundraising – Boemo W. Maboane Chairman CIA – Kealeboga MogaetshoChairman Membership – Bruno Charles Olweny

Additional Members

Guru DoboGirish RamakrishnaBoysie Lobelo Mabengano

Annual Calendar of Events

May 2008 – Awareness monthJuly 2008 - AGMOctober 2008 – Annual Gala Dinner

B I A S O C I A L E V E N T S - G O L F i n P i c t u r e s 2 0 0 8

271. Some of the prizes displayed at the tournament 2.Claudia de Villiers enjoying herself 3.This lady had a fun fi lled day at the tournament. 4 . FNB’s Verily Tebele 5. BIA member Jonnah Pongaponga 6. Ex-BIA President John Stevens 7. BIA member Never Mudzamiri 10. Botswana Golf Union treasurer Venu Desaraju.

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Think about your organisation’s most important asset- your employees- and think about the impact an investment in your most important asset could have on your bottom line.

BUSTING THE MYTH

Corporate Wellness is a relatively new concept in Botswana with many companies and organizations only now

beginning to look at implementing ongoing wellness initiatives. The problem with the concept of wellness currently in Botswana (which is a myth soon to be busted) is that wellness programmes and initiatives are ‘nice to have’, but not essential.

Generally, wellness programmes are viewed as social responsibility initiatives that have little or no effect on the bottom line and do not have measurable outcomes. In fact, many view them as not having any return for the company whatsoever. These views, unfortunately, are held by many MDs and directors, and especially by fi nancial managers.

However, when one starts looking and analyzing the real costs of a sick workforce, or a workforce that abuses various structures in place due to an ‘entitlement’ mentality or culture, wellness no longer falls into the ‘nice to have’ category. It then becomes something that can no longer be overlooked.

We all know that a healthy, happy and supported workforce is one that will deliver higher productivity levels and greater profi ts at the end of the day. So then, ask yourself this question: why do organizations not focus on ensuring that their human capital is performing at its optimum? There are many reasons for this but we believe the most prevalent one is that organizations do not know what the cost benefi ts could be and, more importantly, what it actually costs them in the fi rst place.

CALCULATING THE COSTS

According to the Wellness Council of America, more than 81% of businesses with 50 or more employees in the US have some form of health promotion programme in place. Obviously, we are not comparing Botswana to the USA but what we want to highlight is the staggering number of organizations that currently have these programmes in place. This is because the

value of health and wellness is understood and recognized as it can be measured!A little sum can be done to provide management with an idea of what absenteeism is costing them. If you calculate your annual salary bill and multiply it by 8%, you will have an estimated fi gure as to what absenteeism could be costing you on an annual basis. Then there are also the costs associated with replacement staff when an employee is ill, overtime paid when employees have to catch up work they missed when ill, loss of productivity (money being paid for work not done) etc…We estimate that the average company in Botswana that has no wellness interventions in place and does not monitor their absenteeism consistently has an absenteeism rate of between 6% and 10%. There are organizations with rates as high as 20%. Now you can calculate how much it would save your organization if this were reduced even by 2%. This would certainly cover the cost of some interventions, such as skills training, wellness programmes, occupational health and safety review, team building etc…

Article courtesy of the Corporate Wellness Solutions Newsletter

IGNORING WELLNESS IS COSTING YOUR ORGANISATION!