Lying About Qualifications – Prison Time for Employees on the Horizon
An issue that has been around for a while has been employees misrepresenting their qualifications to their employer. This has adverse consequences for the employer as the employee often proves incapable of doing the required job – this leads to wasted time in disciplinary hearings, dismissal and then a new recruiting cycle begins. That’s in addition to all the damage that an under-qualified employee can do the employer’s business before his or her duplicity is exposed.
This has been worsened by fake institutions which offer people fraudulent qualifications.
The statutory amendment and its wide reach
In a move to address the situation, a statutory amendment makes employees who mislead employers and fraudulent academic institutions liable for up to five years’ imprisonment and/or a fine. The amending Act has been signed into law but will only come into effect on a date or dates still to be determined.
The changes when in effect will provide employees and fake learning institutions with a strong incentive to be honest in the future.
So broad is the legislation that anyone can report to SAQA (The South African Qualifications Authority) any employee or any institution peddling false qualifications.
For example, if X learns from Twitter that Y has faked his or her credentials, then SAQA is bound to investigate if X reports Y to them. This can result in Y being prosecuted and facing prison time.
This all heralds good news for employers with its potential to both reduce their risk of under-qualified employees damaging their businesses, and to save them considerable administration time.
Small Businesses: How to Survive and Thrive
“Why do approximately 70% – 80% of small businesses fail within five years? Why are certain entrepreneurs more successful than others?” (Extract from UWC article below)
Recent research by the University of the Western Cape on the rate of failure of small businesses makes for interesting reading and provides insights that we all really need to take on board, particularly in these hard economic times.
SMMEs, their importance and their failure rates
Globally 60 to 70% of jobs are found in SMMEs (Small, Medium and Micro-Enterprises) but in South Africa this figure is only just over 28% despite more than 95% of businesses in South Africa being SMMEs.
South Africa has a higher failure rate of SMMEs than elsewhere in the world (70% – 80% of our small businesses fail within 5 years). In previously disadvantaged communities only 1% of businesses progress from employing less than 5 people to having staff of 10 or more.
6 factors that can make or break an SMME business
The research indicates that in terms of success factors, 40% can be attributed to the entrepreneur. The characteristics of this person are crucial and they need to show:
- Persistence, being proactive and being a self-starter,
- That they do not react to events but are continually planning (good planning is an important success indicator), innovating, having an ability to learn and apply this learning and having a culture of achievement.
The factors contributing to failure are ones we are aware of:
- Lack of skills – government and large corporates snap up almost all of South Africa’s limited skills,
- Difficulty in accessing finance – lending institutions require a track record before providing funding to businesses,
- Poor accounting records and limited information systems,
- Late payment by state institutions and large corporates (Kenya is considering passing legislation that compels paying SMMEs on time).
There are others too like corruption crowding out legitimate SMMEs and low bargaining power.
Entrepreneurs – what can you do?
Have a look at the 6 factors listed above. Maximise the positives, and do something about the problem areas. Remember, your accountant is there to help you succeed so don’t be shy to ask for advice.
What can government do?
Clearly the country is missing a sizeable opportunity to grow the economy and to reduce our 27% unemployment rate.
One way to get this going is through mentoring and training. Government programs are having a limited impact and there is space for business to also play its part. Why not interview some SMME owners and determine if they have the characteristics as shown above? Those that have the attributes can be successfully mentored to get good accounting records and systems, skills can be addressed as well as access to finance.
Travelling Abroad – Do You Have To Declare Your Personal Possessions On Re-Entry?
There is some confusion over whether to declare your laptops, golf clubs, iPads and other such valuables that you travel out of the country with.
The answer is no you don’t have to declare these items, but you do have to carry with you proof of purchase in South Africa of these goods and show it to Customs officials on request. Invoices or insurance policies are usually adequate proof for Customs.
Alternatively, you may, when exiting South Africa, complete a TC-01 which digitally captures the relevant assets. On completion, the Customs official will get you to sign the form and will give you a copy. This form is valid for six months and if you are a frequent traveller, it is bound to make your life easier.
