Friday, March 29, 2024

Ethics, Integrity and Professionalism -Missing ingredients for National Prosperity

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File: 8 accountants from ministry of Home Affairs who where jailed for five years each for theft by public servant by the Lusaka magistrate court being escorted to prison after the conviction

By Lubinda Mwipihi

The accounting code of ethics consists of the four important qualities namely: Confidentiality, Integrity, Competence and Objectivity. Accounting professionals undertake to adhere to this code of ethics defined by accounting boards.

Accountants at some point in their career will find themselves having to make a decision whether their situation is ethical or not. Ethics are an important aspect of an accountant’s job. As an accountant, one has the duty of care to their customers. In this, the accountant should demonstrate competence and apply confidentiality, integrity, and credibility to their work. Competence is where one shows a high level of professionalism as well as developing the knowledge and skills needed from an accountant.

Confidentiality is when one as an accountant keeps clientele information confidential, unless authorized or legally required to release such information. The Accountant’s ability to communicate with their associates in a manner that avoids any conflict of interest is called integrity. Lastly, credibility is the manner through which the Accountant communicates reasonably and objectively.[pullquote]Do we need a calculator to know that low sales value of copper to the mother company is tax avoidance?[/pullquote]

If trying to resolve an ethical issue, an employee must understand their firm’s business and strategies. If you feel that you may be at risk of violating your ethics then you should contact your personal attorney. This is because your personal attorney can advise you as to what is best for you to do in a particular situation. They will also have your best interest, and if you feel as though you cannot continue to work for your firm any longer then you should give your firm your notice and leave. At times if the situation is pressing and concerns you then this may be your best bet.

Coming from that background of Accountancy – It’s hard to comprehend how Accountants at Moponi Mines could not show professional ethics in their work. The 2008 and pre-audit reports are a slap in their face. The matter is compounded further in the recent independent reconciliation which revealed an absolute discrepancy of K247 billion between what mining companies paid and what the government received in 2008 confirmed the high level of revenue leakage the country was suffering in the mining sector. We need controls to tighten the built.

Their conduct leaves many questions unanswered such as: Are they afraid of losing their jobs? Are they holding these jobs as political appointments? Are these Accountants ones who join the career for money? Etc. Only God knows. Mopani qualified Accountants have proved that they don’t have professionalism, accountability, integrity, honesty, no commitment & dedication to duty & lack competence. Mopani’s failure to address the real issues raised in the audit is another credibility failure. Do we need a calculator to know that low sales value of copper to the mother company is tax avoidance? Does a qualified accountant not know that Tax avoidance is breaking the law? What more do we need to save the nation if accountants cannot show professional ethics?

To deprive poor people of such huge monies is what need to be explained. Zambians still needed clarity from GRZ on why it decided to maintain a lower tax rate compared to the average 47 per cent rate in the southern region. The issue of the windfall tax is now immaterial and the government should adopt a preferred system that would still maximize revenue collection from the country’s core natural resource. The Minister of Finance announced in Parliament that they are providing a long-term fiscal regime to the mining companies of 10 years. After 10 years, they would have ripped the super profits and introduce another investor to continue with the business. Copper is ought to be the main source of greater government income than borrowing as proposed by the Minister. The tax regime in Zambia is very porous. It must be tightened up so that government can collect Taxes across board. It is a fallacy for Government to record GDP growth when copper is not bringing income.

Ethics in its broader sense, deals with human conduct in relation to what is morally good and bad, right and wrong. It is the application of values to decision making. These values include honesty, fairness, responsibility, respect and compassion.” said Rushworth Kidder (President, Institute for Global Ethic).

11 COMMENTS

  1. This is one crap article, I’m surprised it was even published. The author if at all is an accountant is a bloody dumb one!!!

  2. This is good staff. Mr. Lubinda you are doing well with your articles. Intergrity is what we are lacking our leaders. Its political appointments.:-w[-(:)>-

  3. What about the various Government institutions which donot remit what they have deducted to say ZRA ,NAPSA worse still issuing payslips when there are funds to meet salaries! The investors have just taken advantage of weaknesses in the Country as whole.

  4. If only we can have people like you in government, Zambia would be a better place. leaders, civil servants and proffessionals have lost their integrity and have no ethics. Everyday there are reports of misapropriation of public funds, people who should protect public funds and expose thieves have become thugs themselves.Good article sir.

  5. #5 but these qualities should be for every zambian not just proffessionals or politicians if zed is to be a better place.Zambian rot is not due to misappropriation of public funds alone,it is also lack of integrity,ethics & accountability from private citizens who pay a bribe for a job,those who litter,those that put up shacks and those who may pick a candidate just because he is Tonga,Bemba or Lozi like them.We can’t just condemn politicians lack of integrity in misuse of public funds then act innocent when we benefit from paying a bribe.

  6. #1 & 2 You are busy condemning but you do not have a solution for the problem. You are the people who can not discuss issues with your MMD booticker. If you are brought into issues, you want to condemn without giving solution to the problem.

  7. #5 You are sport on and the article is discussing the Missing ingredients for National Prosperity. In all fairness, this is the staff we need. Mr. Lubinda – You understand Zambia very well and you should be in government this year to bring the missing ingredients for national prosperity. You can articulate issue of governace than these MMD guys.

  8. @ 7 you are just the same as 1&2. What is your point?

    This article is okay but I think its generalised when the author was actually talking of a particular proffession, whic i believe he is familier with. We can not therefore take on face value and attribute it to all proffessions as it lacks evidence in that sense. Please lets be guided accordingly when we do critial reviews of some of these topics.

  9. #9 – You are the one without a point. The article is good but the title does not tie with the content of the article. The title should have been “The accounting code of ethics”. I can not comprehend why you are comparing me with number 1 & 2. You are like comparing a LandRover to a Wheelbar. Betterstill, this articles has alot of questions which I feel you are missing to analyse.

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