CONFLICT O PERSPECTIVE
Conflict of interest has been topical in the recent history with debacle of ‘state capture’ involving audit firms and the likes, and not forgetting landmarks events such as Steinhoff, Old Mutual (Moyo debacle) etc. raising questions on the effectiveness of the governance structures existing within Corporate and Public Sector.
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re they even there? Do they have the knowledge/ skills or even have the necessary authority to effect the necessary change or are they fit & proper? In the past year, Board and Sub-committee members have increased their level of awareness and scrutiny to management reports and the levels of assurance that can be drawn from it. Similarly, professional bodies such as SAICA, IIA etc. have come under scrutiny on whether; they can actually ‘bite’ when a member has acted in a questionable manner; whether there is a process to be followed in these eventualities and; has the process stood the test of time or; has a proven record of adding value to the organisation over time. Many organisations have policies in place on conflict interest that will address one of the following issues: that conflicts of interest must be disclosed at the earliest point of detection. Generally, they’ll be a register where all the necessary information is recorded, the nature and monetary value. that the concerned individual should not be involved in the decision-making process concerning the conflict. The definition of conflict of interest relates to the existence of a conflict (clash) between
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CeO 2020 Vol 20.3
