On 24 June 2013, the Competition Commission (South Africa) reached a settlement with 15 construction firms that had contravened the Competition Act. These firms had colluded on projects with an estimated value of R47bn, and were penalised collectively for R1.46bn. Most, if not all, of these projects were for the public sector (http://www.compcom.co.za/assets/Agreement-and-Affidavits/Appendix-1-Background-to-the-media-statement-.pdf).
What interested me in the story are the lessons on the ethical and professional issues. This story has triggered other investigations by law enforcement agencies. There have also been calls for these companies to be deregistered or sanctioned by the Construction Industry Development Board. Some have proposed that they should be blacklisted from public tenders by the National Treasury as what they have done is no different to public theft.
Executives and employees of these companies probably benefited from the proceeds of these inappropriate and fraudulent practices. Some of them were qualified professionals but were prepared to abandon their credo for short-term gain. Interviews with some CEO’s of the companies revealed that some of those involved did not want to co-operate during the investigation. It is possible that some will be charged for fraud and corruption. I wonder why those who could see that this was not right decided to keep quiet.
This reinforces what I think is one of the critical challenges for professionals today. This is being able to balance technical competence with what I call administrative competence. Administrative competence would encompass all the other elements that are not part of the “technical” skills for a job. These would include ethical conduct and governance.
There are many people whose careers have faltered because of paying little attention to this aspect. I always emphasise to the people I mentor that they should know the one thing they have is their professionalism. If your professionalism is the one thing you sell, then it is clear that once you lose this, you will have nothing left. It is simply an unsustainable approach to career development.
Arthur Levitt, the former Chairman of the Securities and Exchange Commission (SEC), made a profound speech on the subject (http://www.sec.gov/news/speech/spch410.htm), entitled "The Public’s Profession". This was in an address to the American Institute of Certified Public Accountants on 24 October 2000. It was a time when the SEC was dealing with countless scandals involving audit companies. Firms such as Arthur Anderson lost their reputation during this period.
He traced the beginning of the accounting profession in the USA 150 years before. These are some of the things he said:
“What was true then is no less true today: the timeless value of credibility, objectivity, and independence; the enduring significance of integrity….
From them [his parents], my passion for independence, both in thought and action, was born…
Today, we have within our collective grasp an opportunity to embrace a renewed commitment to the public trust…
…every public accountant in America has been handed the same precious franchise, granted its special privileges, and charged with its care…
But it's a franchise that demands you defend and protect, above all else, the public trust; a franchise that asks you to stand firm -- even under the weight of management's pressure to "see things their way.”…
…we are dealing with subtle but timeless principles that must sustain a heritage of trust, without burdening the private sector with regulation that may dampen innovation or the creative spirit that is the hallmark of this great nation.”
He ended with these words, which I think every professional should always remember, whether working in private, in the public sector, for a small business or a large corporation:
“You have been handed a precious legacy. What you do with it will determine the future of this profession. It is a heavy burden but an awesome privilege. … lift the light far and wide not just as a profession -- but as individuals -- committed, passionate and resolute to a fidelity that is as much about the profession's past as it is about the profession's future.”
I am convinced one will not have a sustainable career without such independence of thought and a commitment to doing things right. It is something that we should always seek to get right, imperfect as we are.
