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2018 CSSA Boardroom boardroom OFFICIAL MAGAZINE OF CHARTERED SECRETARIES SOUTHERN AFRICA ISSUE 1 | 2018 R30.00 (INCL VAT) 22 25 37 Lifeguard on Duty? Improving Tender Governance The Robo-Director Editor’s Letter of 1999. Another steward of good public-sector governance is Gauteng Finance MEC Barbara All Hands on Deck Creecy, whose department aims to have 100% of the province’s procurement go through an open s specialist investment governance, diving into what went tender process by the 2018/19 company Futuregrowth’s wrong at State-owned power utility finan cial year, improving trans- director, Andrew Canter, Eskom in an inter view with former parency and narrowing the scope points out on page 18, Eskom divisional executive A for cronyism and corruption. Read govern ment and State-owned Mohamed Adam. On pages 11 boardroom’s interview with Creecy entities have a special duty to care 17, Adam surveys the wreckage to on pages 25 to 27. for the assets of the nation. left behind by past Eskom boards. There is hope in South Africa Therefore, I think public-sector We also highlight the hope that that we can put corruption behind governance is a fitting theme for South Africa’s recently inaugurated us, but hope floats for just so long. this re-launch edition of CSSA’s President Cyril Ramaphosa, will During the next few months, boardroom magazine. take the helm and captain the public-sector governance must There is a terrible contradiction country towards improved ethical be urgently improved. This is if government champions broad- governance with the help of his a pre-requisite for a return to based black economic empower- first mate, Public Enterprises economic growth and to stimu - ment and job creation, on the one Minister, Pravin Gordhan. CSSA late broad-based development. hand, but public-sector com panies president Shamida Smit dis- and government depart ments cusses this sense of optimism suffer form poor gover nance and on pages 6 to 9, as does a corruption, on the other. Broad- boardroom contributor and based develop ment requires the seasoned financial journalist,Ann delivering of critical basic services, Crotty on pages 22 to 24. Crotty particularly to the poorest in our emphases the need for better society. enforcement of the law under the In this issue of boardroom, Companies Act of 2008 and the Tracy Hancock we focus on public-sector Public Finance Management Act Editor DIRECTORS CONTRIBUTIONS: President: Shamida Smit Senior Vice President: Sikkie Kajee The Editor welcomes contributions from members and students, to be Vice President: Robert Likhang Past President: Karen Southgate received in February, May, August or October for inclusion in the following Chief Executive: Stephen Sadie month’s magazine – Please contact Tracy Hancock at 011 622 3744 Natasha Bouwman, Brian Dialwa, Herman Kocks, Zernobia Lachporia, or Email [email protected]. Sandra Linford, Johann Neethling, Raymond Pillay, Karen Robinson, Carina Wessels and Christopher Wilson boardroom is produced by Creamer Media Contract Publishing for The Southern African Institute of Chartered Secretaries and Administrators NPC. EDITORIAL COMMITTEE: Copyright reserved©. The right of reproduction in any form of the whole or any part of any Stephen Sadie, Sabrina Paxton, Janine Joubert and Nikita Theodosiou article or other matter published in boardroom is vested in The Southern African Institute of Chartered Secretaries and Administrators NPC. All opinion in this magazine is published on ADVERTISING & SALES: the basis that it does not constitute the official opinion of the Institute unless expressly so Tel: 011 551 4000, Email: [email protected] stated. Further, all those involved in the preparation and distribution of this magazine are not providing legal, accounting or other professional advice and, hence, do not accept any HEAD OFFICE responsibility for the accuracy of any of the opinions or information therein. The Institute Riviera Road Office Park (Block C), 6-10 Riviera Road, Killarney, does not accept any liability to advertisers for the publication of advertisements which may Johannesburg, 2193. PO Box 3146, Houghton 2041. Tel: 011 551 4000. be held to be contrary to law. Email: [email protected], [email protected], Join us on Facebook [email protected] Reading the magazine counts 2 hours towards www.chartsec.co.za non-verifiable CPD. 2 boardroom | Issue 1 | 2018 Contents A New Beginning Governance Circus Throwing Shade By Stephen Sadie 4 By Tracy Hancock 11 By Tracy Hancock 18 Lifeguard on Duty? Federal Fraud Bring in the Substitute By Ann Crotty 22 By Tracy Hancock 31 By Christina Pretorius 34 The Robo-Director A Fresh Face By Ronelle Kleyn 37 By Tracy Hancock 43 Dates to Diarise 47 CEO’s Message Improving Tender Managing Governance A New Beginning 25 Governance 39 in the Cloud 4 Public sector governance Tracy Hancock speaks Diligent releases solution under the spotlight to Gauteng Finance MEC to strengthen governance By Stephen Sadie Barbara Creecy … By Tracy Hancock Advancing Altering Mindsets Boardroom Skills Accountability Company secretary role 28 Detecting Deception 6 Southern African SOEs should critical to ethical South 41 Are you adept at the basics be as accountable to general Africa, CSSA working of detecting lies? public as listed companies to grow awareness By Tracy Hancock By Tracy Hancock are to shareholders By Tracy Hancock Members & Students A Fresh Face Cover Story International Insight Governance Circus 43 The company secretary Federal Fraud profession chose 11 Can new board fix the Australia looking to introduce fundamentals at Eskom? 31 Christine Fourie a federal anticorruption body By Tracy Hancock By Tracy Hancock By Tracy Hancock Study Tips for News to Note Legally Speaking 45 Exam Success Throwing Shade Bring in the Substitute By Dr Jacqui Baumgardt 18 Futuregrowth report calls 34 Alternate directors: new tricks for significant improvement for an old dog Dates to Diarise in SOE governance practices By Christina Pretorius Seminars 2018 By Tracy Hancock The Tech Track 47 Webinars 2018 Lifeguard on Duty? The Robo-Director Important dates for 2018 22 South Africa in position 37 Artificial intelligence could to turn the tide of public-, influence amendments to private-sector governance corporate law in future By Ann Crotty By Ronelle Kleyn boardroom | Issue 1 | 2018 3 CEO’S MESSAGE A New Beginning BY STEPHEN SADIE Public-sector elcome to our Transnet, the South African brand new look Broadcasting Corporation, governance and feel of the the Passenger Rail Agency under the W boardroom of South Africa, Airports magazine. It is a new Company South Africa and spotlight beginning for boardroom as Denel. Parliament has awoken we move into a digital format. from its slumber and poor The theme of this first issue governance in the public of the new look boardroom sector is being tackled daily. is public-sector governance. We were delighted with the It is also a new beginning for swift appointment of the new public-sector governance. Eskom board which looks There is a new mood in the promising. We look forward country as we to a major clean-up of other begin to unravel SOE boards. We look forward to ourselves from the We wish our new Public ❝ doom and gloom Enterprises Minister Pravin a major clean-up of of the Zuma era. Gordhan all strength in this other boards As a country, we mammoth undertaking. ❞ were dragged Even though the SOEs have down over the hogged the headlines, poor past few years public-sector governance by poor governance and the is not limited to SOEs corresponding corruption but includes national and at numerous State-owned provincial departments and enterprises (SOEs) such as municipalities. One only has Eskom, South African Airways, to read the Auditor-General’s 4 boardroom | Issue 1 | 2018 CEO’s Message (AG’s) reports to parliament put their lives on the line by to realise the extent of poor exposing the corruption. We governance across these have no doubt that there will three levels. We fully support be a massive pushback from the AG’s attempt to change those who benefited from the legislation giving his office the wheeling and dealing more teeth in taking action that went on, as they cling to against serial offenders. their privileges. However, it For years, we as CSSA, is incumbent on all of us to have continuously highlighted continue to insist and work on the governance problems an ongoing clean-up. in the public sector. This Although this issue focuses has been a golden thread on public-sector governance, in our premier corporate we should be under no illusion Media Photo by Creamer governance conferences, that all is well in the private CSSA CEO STEPHEN SADIE in our seminars, in our sector. Steinhoff, KPMG, SAP, technical newsletters and in McKinsey and Resilient are all our boardroom magazine. well-known examples of poor In 2016, we introduced a corporate governance in the module on public-sector private sector. governance as we decided CSSA will continue to strive that we should put our to improve on governance shoulder to the wheel and in both the public and do something constructive to private sectors. We offer an build up a cohort of trained internationally recognised, governance professionals honours-level qualification in who could make a difference corporate governance. We to the public sector. In fact, have attracted numerous we were the first division other professionals, such of our international body, as lawyers, accountants, ICSA, to put together such a risk managers, compliance module. We hope to build a officers and others, who strong cohort of governance wish to improve on their professionals in the public understanding and practice sector that never again will we of corporate as a country have to witness governance. We what we have witnessed over look forward to the past few years.
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