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Counting the cost of skill shortages in public sector
BERTIE LOOTS
FORMER Deputy Auditor-General Bertie Loots says the biggest challenge facing government and its related organisations is the building of financial management skills. He quickly adds that the public-sector skills problem has been there since the early 1980s. Loots left the office of the auditor-general at the end of February and tomorrow rejoins accounting and auditing firm Deloitte & Touche. He says the skills problem will be magnified by the move from the cash-based accounting system to the accrual one. "Even the cash-based system is problematic. Doing a bank reconciliation statement is not the most exciting thing, but a certain level of skill is required." To alleviate the problem, Loots says the private sector can help by transferring skills to the public sector. One way to do this could be for the private sector to second people to various government structures and parastatals. In his new capacity as the partner in charge of Deloitte & Touche's national accountability services unit, which provides services to the public sector, Loots will put the firm's expertise where his mouth is. "The accounting profession in SA has a lot of skills to offer. Local accounting professionals are the most sought-after in the world but, until fairly recently, the profession did not get involved in public-sector work. Even the training of accountants did not have a public-sector component," he says. This was partly because civil servants were always "extremely protective" of their turf. Also, accountants worldwide focused on the private sector. Loots says public-sector institutions account for between 30% and 35% of the country's economic output, as measured by the gross domestic product, underlining the need for the accounting profession's contribution. But accountants need to understand that the environment in the public sector is different from that of the private sector, he says. "The private sector can do whatever the law does not say is illegal. But in the public sector, since you are dealing with public monies, you can only do what the law says you can." Loots began his career with Deloitte & Touche in 1972 and left the firm in 1984 to lecture at the University of Pretoria. After a two-year secondment to the auditor-general's office, he rejoined Deloitte & Touche as a partner in 1990. He was appointed deputy auditor-general in 1991. "I have been in the fortunate position of really enjoying the jobs I have done," he says, adding that the main difference between his position at Deloittes and in the office of the auditor-general is that the auditor-general is there to express criticism whereas the work at Deloittes will be more constructive in terms of assisting to improve government efficiency. "My six-and-a-half years with the government have been most rewarding and I am grateful for the comprehensive experience I have gained, but the time has come to move on. I am looking forward to my return to the private sector." Loots counts among the highlights of his career having the office of the auditor-general made independent of the executive and its appointment in 1995 as auditor of the World Health Organisation. The World Bank has also had complimentary things to say about the office. In a report in November last year, the bank said it was "the best practice" and its professional quality was "exemplary". Loots says the office's role is to protect democracy and ensure government accountability. "The office serves the legislature which controls the purse strings. The legislature approves the budget and needs to know the executive spends the money properly." Loots's wish is for "the office to be the recognised and respected protector of democracy by all the people of South Africa".
Jabulani Sikhakhane
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