Companies’ regulator puts more emphasis on corruption busting
Lawyer describes new guidelines as an unrealistic wishlist, while corporate governance expert says more monitoring of existing law is needed
New guidelines from the companies’ regulator, focusing on ethics and corruption, attempt to beef up the corruption-busting responsibilities of the social and ethics committees (SEC) of listed and state-owned companies considerably. The guidelines, which were issued in the second half of November by the Companies and Intellectual Property Commission (CIPC), could make the previously downplayed SEC the most powerful board-appointed committee, giving it oversight even of the board’s audit function. The guidelines have been issued as the government and the private sector grapple with high-profile cases of corruption that have cost the economy billions of rand and undermined the standing of the public and private sector. The most controversial aspect of the new guidelines, which were described as an unrealistic wish list by one corporate lawyer, is that the SEC will now be responsible for ensuring the company has a clear and concise accounting policy that prohibits off-the-books accounts...
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