ENOCH GODONGWANA: Membership of ANC NEC does not preclude development bank role
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Old Mutual-linked financial services company Futuregrowth Asset Management has raised the issue ( of my roles as both an ANC national executive committee (NEC) member who chairs the party’s economic transformation committee and as the nonexecutive chair of the Development Bank of Southern Africa (DBSA).
This is easily addressed. No law has been infringed by my holding these positions. I am an ANC member who has been elected to leadership positions, but I am not an employee of the ANC or any government department. As a board member of the DBSA, I am guided by the same fiduciary duties as other board members. I follow the same good governance principles as my fellow board members, and if and when any conflict arises it will be dealt with formally, in the same manner as such conflicts would be dealt with by other board members.
Development finance institutions must be held to the same governance standards as publicly listed companies — the boards of such institutions must act in the best interests of all stakeholders, funders, employees and suppliers. There are many people in SA in the category of “politically exposed persons” or “domestic prominent influential persons”, and a rigorous system of compliance is required by law to ensure the proper regulation of their activities.
It was never the intention of the relevant legislation — such as the Financial Intelligence Act — to preclude such persons and their family members from conducting their daily lives and the honest pursuit of their livelihoods. What is required by the legislation is the kind of enhanced scrutiny that allows for the careful assessment of the sources of wealth and funds of such persons.
It is in this context that the proper regulation of the activities of politically exposed persons via the compliance systems of the banking and financial sectors is of fundamental importance, and such persons should be prepared to submit themselves to lifestyle audits to help stamp out corruption.
Since 2012, the World Bank has published surveys about development finance institutions such as the DBSA. Its 2017 report assessed a number of key features of such institutions, including their ownership, mandate and governance practices.
It was found that the government fully owned 85% of those surveyed and 10% had minority private sector participation of 1%-49%. It was further found that 75% of such entities were established by legislation and 25% were set up as ...
This is easily addressed. No law has been infringed by my holding these positions. I am an ANC member who has been elected to leadership positions, but I am not an employee of the ANC or any government department. As a board member of the DBSA, I am guided by the same fiduciary duties as other board members. I follow the same good governance principles as my fellow board members, and if and when any conflict arises it will be dealt with formally, in the same manner as such conflicts would be dealt with by other board members.
Development finance institutions must be held to the same governance standards as publicly listed companies — the boards of such institutions must act in the best interests of all stakeholders, funders, employees and suppliers. There are many people in SA in the category of “politically exposed persons” or “domestic prominent influential persons”, and a rigorous system of compliance is required by law to ensure the proper regulation of their activities.
It was never the intention of the relevant legislation — such as the Financial Intelligence Act — to preclude such persons and their family members from conducting their daily lives and the honest pursuit of their livelihoods. What is required by the legislation is the kind of enhanced scrutiny that allows for the careful assessment of the sources of wealth and funds of such persons.
It is in this context that the proper regulation of the activities of politically exposed persons via the compliance systems of the banking and financial sectors is of fundamental importance, and such persons should be prepared to submit themselves to lifestyle audits to help stamp out corruption.
Since 2012, the World Bank has published surveys about development finance institutions such as the DBSA. Its 2017 report assessed a number of key features of such institutions, including their ownership, mandate and governance practices.
It was found that the government fully owned 85% of those surveyed and 10% had minority private sector participation of 1%-49%. It was further found that 75% of such entities were established by legislation and 25% were set up as ...