16 Apr 2026
Johannesburg – Thursday, 16 April 2026 – The Independent Regulatory Board for Auditors (IRBA) has today confirmed that its disciplinary hearing panel has found Mr Nhlanhla Sipho Malaba guilty on all charges of improper conduct brought against him and, in its sanction ruling issued yesterday, imposed sanctions that include permanent disqualification from registration as a registered auditor.

The findings arise from disciplinary proceedings relating to audits of the financial statements of VBS Mutual Bank, Spectramed and the Industrial Development Corporation (IDC), in which Mr Malaba acted as audit engagement partner.

In its ruling on the merits, dated 19 March 2026, the disciplinary hearing panel found that Mr Malaba contravened applicable requirements of the Auditing Profession Act, IRBA’s Rules Regarding Improper Conduct and prescribed auditing standards, and found him guilty of eight charges across the three audits.

Following the merits ruling, a sanction hearing was convened. Mr Malaba did not participate in the sanction hearing and the disciplinary hearing panel proceeded in accordance with its statutory processes and powers.

In its sanction ruling dated 15 April 2026, after considering aggravating factors submitted by the IRBA, the disciplinary hearing panel imposed the following sanctions. Mr Malaba is permanently disqualified from registration as a registered auditor, and IRBA is authorised to take the steps necessary to give effect to that permanent disqualification.

The panel further ordered a fine of R200 000 per charge, totalling R1.6 million in respect of the eight charges referenced in the sanction ruling. This represents the maximum sanction permissible per charge under the regulatory framework applicable at the time the misconduct occurred. The panel further ordered that IRBA publish a summary of the charges, the merits finding and the sanction finding on IRBA’s website and in any other appropriate medium that IRBA deems necessary.

In addition, the disciplinary hearing panel ordered Mr Malaba to pay 100 percent of IRBA’s costs incurred in connection with the matter, reflected in the schedule of costs before the panel as R9 252 537.92.


The disciplinary hearing panel also directed that a summary of the charge sheet and the merits and sanction findings be referred to Mr Malaba’s primary professional member body – the South African Institute of Chartered Accountants (SAICA), and the National Prosecuting Authority for further consideration to the extent of their competence and authority.


The IRBA welcomes the panel’s decision and emphasises that the auditing profession plays a critical public interest role whereby registered auditors are required to uphold the highest standards of integrity, independence and professional competence. The conduct in this matter constitutes a serious breach of those obligations and underscores the risk posed by delinquent auditors to the credibility and trust of the profession.

The IRBA will continue to act decisively, within its statutory mandate, to protect the public and uphold the integrity of the auditing profession.

Ends

The detailed merits and sanctions rulings can be found here:

• • Merits Ruling – Malaba
  • Sanctions Ruling – Malaba

About IRBA:

The Independent Regulatory Board for Auditors (IRBA) is the statutory body mandated to regulate the auditing profession in South Africa. Established by the Auditing Profession Act 26 of 2005, the IRBA’s mission is to protect the public interest by ensuring the highest standards of audit quality and ethical conduct among registered auditors.