Suren Maharaj’s superpower is turning around financially struggling entities. He has proved that financial analysis, strategic planning, and governance restructuring empower even moribund organisations to focus on revenue enhancement, cost efficiencies, and accountability.
In his 29-year career, Suren Maharaj has accumulated extensive experience and expertise, distinguishing himself as an astute chief financial officer (CFO) and leader in both the private and public sectors.
He is currently the CEO of SM Consulting, a firm specialising in public sector financial management, procurement, risk management, and auditing. The company offers a range of services essential for effective governance and financial management.
Maharaj began his career with a strong foundation in accounting and business, taking on progressively challenging roles in startups and multinational companies across various industries, including significant roles at Motorola and European Marine Contractors (London). He attributes his accomplishments to a deliberate focus on integrating financial strategy with business objectives. ‘That’s a surefire way to promote growth and sustainability,’ he says.
Applying business experience to the public sector
Maharaj says that working in the private sector provides valuable experience that can significantly inform and enhance approaches in the public sector.
‘In business, you need a thorough understanding of financial management, budgeting, cost control, and ways to generate revenue. This knowledge is extremely useful when applied in the public sector for improving financial practices and making smarter decisions.’
Another key aspect is adaptability, he adds. ‘A fast-paced and dynamic environment teaches professionals to be flexible and navigate through changing circumstances effectively. This skill is incredibly useful in the public sector, where policies and regulations often evolve, presenting complex challenges.’
The focus in the private sector on efficiency, productivity, and maximising returns on investments is another beneficial perspective. Applying this mindset in public entities, Maharaj says, identifies areas for improvement, streamlining processes and boosting overall performance.
Experience in stakeholder management is also transferable. ‘Managing relationships with clients, customers, employees, and government officials in the private sector equips professionals with skills to handle diverse stakeholder interactions in the public sector effectively.’
Likewise, business professionals usually have experience in identifying and mitigating risks to safeguard assets and optimise outcomes. This expertise is highly valuable in the public sector for recognising financial risks and developing effective management strategies.
‘Combining business experience with public sector work leads to a more comprehensive approach to financial management consulting in government organisations,’ he says. ‘It blends sound financial principles with an understanding of the unique challenges and considerations of the public domain.’
Putting experience to work
One of Maharaj’s most remarkable successes was at Pikitup, the waste management service provider for the City of Johannesburg which employs more than 4 500 people. As CFO, he guided the company to its first clean audit and solvency in its 14-year history during the 2014/15 financial year. This accomplishment led to his nomination for the 2016 CFO South Africa Awards.
‘Achieving a clean audit in a public sector that’s notorious for financial misconduct is a great accolade for any CFO,’ he says. ‘This achievement was particularly significant and deserving of double celebration for me. It marked the first time in the company’s 14-year history that we achieved a clean audit and solvency in the same financial year.’
During his time in the public sector, Maharaj contributed to enhancing ethical standards and promoting transparency and accountability. It was an approach that resulted in clean audits for the Companies and Intellectual Property Commission (CIPC) for six consecutive years under his chairmanship of the Audit and Risk Committee. He continues to play significant roles in various boards and councils at different government levels to improve governance and policy development.
Eight strategies to ensure clean audit
Turning around financially struggling state-owned entities (SOEs) and ensuring clean audits requires a comprehensive approach. Here are Maharaj’s tips for getting it right:
- Financial restructuring − Perform a thorough financial analysis to identify the root causes of the financial struggles. Implement measures such as debt restructuring, cost containment and revenue enhancement to stabilise the finances of the SOE.
- Strategic planning − Develop a clear and realistic strategic plan aligned with the SOE’s objectives. This plan should include a roadmap for reviving the finances, improving governance, ensuring accountability, and enhancing operational efficiency.
- Governance and accountability − Strengthen the governance structure by implementing robust financial controls, transparency measures, and accountability mechanisms. This involves ensuring compliance with regulations, improving procurement processes, and establishing effective internal audit functions.
- Performance management − Set performance targets and establish key performance indicators (KPIs) for different departments within the SOE. Regularly monitor performance against these targets, identify gaps, and take corrective actions to improve performance and outcomes.
- Professionalisation and skills development − Invest in capacity-building and skills development programmes for employees at all levels of the SOE. This includes promoting a culture of professionalism, implementing training programmes, and hiring skilled professionals to enhance financial management and technical expertise.
- Stakeholder engagement − Build strong relationships with stakeholders, including government entities, employees, unions, and civil society. Transparent communication and engagement can help gain support, gather feedback, and address concerns, fostering a collaborative approach to the turnaround process.
- Efficiency and cost optimisation − Conduct a thorough review of business processes to identify inefficiencies and areas for cost optimisation. Implement measures such as streamlining operations, improving procurement practices, and leveraging technology to enhance efficiency and reduce costs.
- Continuous monitoring and reporting − Establish robust systems for monitoring financial performance, regular reporting, and performance assessments. This enables timely identification of challenges, facilitates data-driven decision-making, and ensures transparency in financial reporting.
Value of professional networks
Maharaj’s professional network is extensive. He is an active member of several organisations, including SAICA, the Institute of Directors of Southern Africa, CFO South Africa, the Chartered Institute of Government Finance, Audit and Risk Officers, and the South African Institute of Government Auditors. He also plays key roles on various boards and councils at the national, provincial and local government levels.
‘Serving on various boards and councils at national, provincial, and local government level has significantly enriched my understanding of governance in the public sector,’ he says. ‘This involvement has offered firsthand experience in decision-making, policy formulation, and strategic planning, while exposing me to the complexities of managing public resources and addressing public concerns. My involvement in these various boards and councils has been instrumental in shaping a well-rounded perspective on public sector governance.’
Technology and governance
Technology plays a key role in improving how the public sector, especially in areas like financial management and auditing, operates. ‘We can automate many routine tasks like data entry, financial reports, and audit processes,’ he says. ‘This makes these activities more efficient, cuts down on human errors, and helps stick to rules and regulations better. Also, technology helps manage and analyse data more effectively. With advanced tools, auditors and financial managers can get better insights, spot risks, and make decisions based on solid evidence. This is crucial for improving how government works.’
Technology also makes things more transparent and improves accountability. ‘For instance, having access to financial information and audit reports in real-time helps reduce chances of corruption or mismanagement. Things like blockchain can make records more secure and trustworthy. It also helps with following rules and managing risks by automating checks and keeping an eye on transactions.’
In situations like a crisis or when people can’t meet in person, technology lets auditors do their work remotely, making communication and sharing information easier. Real-time reporting tools help keep track of finances and make quick, informed decisions. ‘However, with all these technology benefits, it’s important to plan well, manage changes, and train staff properly. Investing in good technology infrastructure and strong cybersecurity measures is also vital to protect sensitive financial data and make the most out of digital transformation in the public sector.’
Mentoring and education
Maharaj believes in ongoing leaning and has almost a dozen qualifications to his name, including an MBA (cum laude, 2022). ‘My solid financial grounding as a CA(SA) has formed the basis of my career. Being certified in Black Belt Digital Six Sigma has given me additional skills to improve digital processes, enhance customer satisfaction, and drive organisational efficiency. Using data-driven approaches, problem-solving, project management, and change management techniques delivers measurable results in a digital context.’
His focus is increasingly turning towards mentoring and education. ‘I’m now in the process of completing a doctorate in business administration, which is a major step towards fulfilling my dream of teaching postgraduate students. I believe in bridging the gap between academic theory and practical application and using real-world experience to enrich the learning process of our future leaders.’
Author
Monique Verduyn
